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BUSINESS 
CORRESPONDENCE 

VOLUME  III 

HOW  TO  HANDLE  THE  DISTANT  CUS- 
TOMER: 23  chapters  and  extracts  from  2^3 
actual  letters  on  keeping  in  touch  with  the  deal- 
er's trade  by  mail  and  getting  business  from  re- 
tailers; how  to  open  up  new  territory;  how  to 
bring  in  the  money  due;  how  to  handle  and 
eliminate  complaints^  and  make  adjustments;  and 
how  to  make  the  letter  a  factor  in  every  phase  of 

selling 


A.  W.  SHAW  COMPANY 

Cass,  Huron  and  Erie  Streets,  Chicago 
299  Madison  Avenue,  New  York 
43-44  Shoe  Lane,  London,  E.  C. 


4010G 


Copyright,  1911.  by 
The  System  Company 


1st  Printing,  July,  1911 

2iid  PriutinE.  October,  1911 

3rd  Printing,  April.   1917 

4tL  Printing.  November,   1917 

5th  Printing,   November,   1918 

Gth  Printing,   March,    1919 

7th  Printing.  February,   1920 

8h  Printing.  July,   1920 

9th  Printing.  April.    1922 


Printed  in  U.  S.  A. 


^ 


H  ^ 
3^^ 


CONTENTS 


S   BUSINESS  CORRESPONDENCE 
VOLUME  III 

PART  XI 

How  To  Get  Business  From  Dealers 

Chapter  Pack 


Putting  Propositions  to  the  Dealer  in  Letters  •        .  5 

How  to  Get  Business  by  Mail  from  Dealers     »        .        .  17 

Gretting  Business  from  Four-Corner  I'owns      •        •        «  25 


PART  XII 

How  to  Open  New  Territory  by  Letter 

52:      Opening  New  Selling  Fields  by  Mail        .        .        •        .  34> 

63:      How  Manufacturers  Drum  up  Trade  for  the  Dealer        .  41 

64:      How  to  Interest  New  Dealers  by  Correspondence    •        .  47 

55',      Building  Up  a  Trade  for  the  Retailer      «        •        •        .  54 

PART  XIII 

Usin^  Letters  on  the  Dealer  Trade 

66 il      Introducing  the  Salesman  and  Backing  Him  Up      ,        •  60 

57:.      Keeping  In  Touch  with  the  Dealer  By  Mail    .        .        «  71 

58:      Cooperating  with  the  Dealer  in  Campaign  on  Consumers  78 

69:       Wielding  the  Big  Slick  in  Letters  to  Salesmen  .        .  88 

60:      Salesman's  Letters  That  Keep  Up  a  Customer's  Interest  95 


CONTEXTS 

PART  XIV 

Collecting'  Money  by  Mail 

How  to  Collect  Mercantile  Accounts  by  Letter 

How  the  Retailer  Collects  Accounts  bj'  Mail    . 

How  to  Make  Instalment  Collections      . 

How  Petty  Accounts  are  Collected  . 

Collection  Schemes  for  Use  When  Other  Methods  Fail 

Holdinfi  the  Trade  of  the  Poor  Credit  Risk     . 


107 
118 
126 
130 
147 
156 


PART  XV 

Handling  the  hong- Distance  Customer 


Making  Capital  Out  of  Complaints 
The  House  Policy  in  Handling  Routine  Complaints 
Finding  the  Right  Attitude  Toward  Complaints 
How  to  Systematize  the  Complaint  Department 
How  to  Eliminate  Complaints  .        .        .        . 


170 
177 

136 
196 

bos 


Index       ...  ......        210 


Putting  Propositions  to  the 
Dealer  in  Letters 

PART  Xt  HOW  TO  GET  BUSINESS  FROM  DEALERS     CHAPTER  49 

IT  is  not  the  selling  scheme  cdone^  nor  ilie  special 
terms,  nor  tlie  exclusive  privilegey  nor  any  of  the 
other  tricks  in  the  salesman's  pack  that  finally 
swing  the  dealer  from  the  ** prospect^'  list  to  the 
customer  list;  it  is  the  MANNER  IN  wmcH  THESE 
PROPOSITIONS  ARE  PRESENTED  TO  EIM.  There  is  a 
right  and  a  wrong  method  of  approaching  him  by 
mail — o5  illustrated  on  the  following  11  pages 

THE  average  manufacturer  is  so  much  in  love  with  his 
product  that  he  camiot  get  away  from  it.  He  con- 
stantly talks  to  the  dealer  of  his  article  as  an  article 
while  it  is  in  reality  a  «)mmodity  of  trade.  His  most 
common  as  well  as  his  most  disastrous  mistake  in  his 
selling  argument  is  to  lose  sight  of  the  great  fundamental  prin- 
ciple on  which  all  dealer  argujnents  must  hinge — the  fact  that 
merchandise  is  merely  the  vehicle  by  which  profits  are  conveyed 
to  the  dealer. 

As  long  as  the  manufacliirer  fails  to  adjust  his  viewpoint 
to  that  of  the  dealer;  as  long  as  he  attempts  to  interest  the 
retailer  with  arguments  on  quality  and  adaptability  while 
he  should  be  talking  profits,  sales,  customers,  his  letters  will 
fail  in  their  mission. 

The  reason  is  not  difficult  to  understand.  Stop  and  con- 
sider that  the  function  the  dealer  plays  in  the  world  of  industry 
is  to  supply  a  medium  through  which  goods  are  conveyed  from 
the  producer  to  the  consumer — that  his  function  is  to  dis- 
ribute  produce,  not  to  use  it — and  you  will  understand  why 
oerchandise  as  mere  merchandise  does  not  interest  him.    The 


KNOW  THE  DEALER'S  PROBLEMS 


dealer's  business  is  the  selling  medium,  and  his  love  b  not  for 
the  game  but  for  gain:  he  is  looking  for  the  profits  that  the 
handling  of  goods — the  distributioa  of  an  article — must  offer 
him.    If  the  article  offers  no  gain,  he  is  not  interested. 

Come  down  to  the  every-day  principle,  that  the  dealer  is 
just  a  plain,  ordinary  man,  with  the  same  inclinations,  the 
same  preferences  and  prejudices,  the  same  degree  of  human 
selfishness  that  you  or  I  or  other  men  in  business  have;  that 
if  you  offer  him  something  by  which  to  gain  customers,  trade, 
prosperity,  he  is  interested,  and  your  appeal  will  reach  home. 

Thus  it  is  evident  that  the  letter  which  gets  the  interest  and 
con^^nces  the  dealer,  must  adopt  his  point  of  view — must  sur- 


•  SSOqANCE  OF  PEM«ND 


GOOD  SER'/lce 


SELUING  ASSISTANCE 


NEW  TEATUBES 


USE  or  GUABANTCE 


FBEE  TRIAL 


^Pff'WATE  BnANO 


f   exCLUSIVE  TERRITORY 


FEAR  or  COMPETITIOM 


PRORTS 


vey  his  problems^,  his  troubles  and  diflSculties  from  his  attitude. 
It  must  aim  to  solve  the  problems,  lighten  the  troubles  and 
lessen  the  difficulties";  it  must  attempt  to  supply  the  dealer's 
wants.  And  the  manufactiurer  who  attempts  to  secure  the 
dealer's  interest  or  cooperation,  without  a  full  knowledge  of  the 
proper  weight  of  these  human  qualities  in  the  letter,  will  misa 
the  point  of  contact 

Consider  the  importance  of  knowing  the  dealer's  business, 
his  problems,  his  condition,  the  trade  influences  affecting 
him,  before  you  attempt  to  find  a  point  of  contact.  The 
ways   by  which  this  point  of  contact .  may  be  secured  are 


APPEALING  TO  THE  DEALER  S  JUDGMENT  7 

numerous.  You  may  play  upon  the  dealer's  desire  for  gain, 
his  ambition  for  success,  or  you  may  work  upon  his  sentiment. 
You  may  strike  straight  at  his  interest  by  inducement,  or  per- 
haps you  may  use  pressure  to  force  an  entry  into  his  good  graces. 
You  may  even  vi'ield  the  club  of  fear,  and  thus  command  his 
good  will  and  cooperation. 

Then  you  may  approach  him  with  some  original  method, 
some  new  idea  with  which  he  is  not  familiar,  thus  first  appealing 
through  natural  curiosity  and  then  quickly  swinging  to  your 
proposition.  But  in  any  case,  you  must  apply  the  fundamental 
principle,  that  you  aim  to  offer  him  something  that  brings  him 
gain — that  you  seek  to  benefit  him  as  well  as  yourself — that  your 
proposition  is  mutually  profitable. 

"I  am,"  and  "my  goods  are,"  is  the  gist  of  the  letter  that 
the  average  manufacturer  writes  to  the  dealer,  while  the  basic 
idea  of  the  letter  should  be,  "What  you  can  do  with  my  goods," 
"The  customers — the. profit — my  goods  will  bring  you,"  "Why 
you  can  handle  my  goods  to  your  benefit."  Tell  the  dealer 
that  you  can  offer  him  trade,  customers — that  your  goods  will 
sell  readily;  and  prove  it,  if  you  would  gerliis  interest.  Tell 
him,  "Here  is  a  line  of  customers  who  want  my  goods,"  or, 
"Here  are  profits  which  you  should  be  pocketing,"  or  approach 
him  with  this  argument,  "I  merely  want  you  to  distribute 
these  goods — to  supply  a  demand  which  I  will  create  for  them." 
These  are  the  arguments  to  which  he  will  listen,  because  they 
spell  "more  sales — more  orders"  to  him.  And  this  is  the  appeal 
that  gets  him  in  line. 

SCHEME  1— THE  OFFEH.  OF  "MORE  CUSTOMERS" 

A  cigar  manufacturer's  letter  tells  the  dealer,  "Customers 
are  included  vsith  the  cigars.    You  may  not  want  the  tobacco 

— but  you  do  want  the  customers.    When  you  buy you 

get  the  men  who  smoke  them,  too;  we  deliver  both.  We 
make  the  cigars  and  the  <lemand.  The  cigars  are  ready  and 
the  demand  will  be  started  as  soon  as  we  get  local  distribution. 

There  is  no  risk  in  placing  an  order  for except  the  risk 

of  delaying  too  long.  This  is  the  best  five-cent  cigar  that 
ever  left  the  factory.  We  are  so  confident  of  the  quality 
that  we  are  putting  enough  money  back  of  our  confidence  to 
make  sure  of  a  big  market  ahead  of  us  in  your  tovm."    Doesn't 


8  EXAMPLES  OF  GOOD  SELLING  POINTS 

this  letter  offer  hit  the  target,  when  it  is  aimed  at  the  man  who 
i3  looking  for  the  margin  that  sales  on  an  article  bring 
him?  The  possibilities  of  future  gain  influences  the  retailer 
and  the  argument  is  effective. 

SCHEME  2— THE  UNIQUE  PACKAGE 

A  dealer  letter  used  by  a  manufacturer  to  bring  out  this 
point  says: 


'The  handsomest  nickel  cigar--packed  In  the  moat  unique 
tox   ever  seen  In  the  trade.  The  cigar  is  ripe,  hut  the  hox  is 
green--you  can't  miss  the  BOX  in  the  CASE,  but  if  the  man  who  haa 
teen  educated  hy  our  advertiaine  should  come  in  and  demand  it 
^nd  doesn't  BE3  the  green  box,  he'll  ask  you  if  you  'see  anything 
sreen  In  his  eye,'  and  will  go  to  the  irEXT  shop.' 


There  is  one  angle  on  which  a  "quality"  talk  may  be  himg 
in  an  appeal  to  the  dealer.  Show  the  dealer  that  the  quahty 
is  the  feature  that  creates  the  demand — then  prove  to  him  that 
your  product  has  this  particular  demand-creating  property  and 
the  argument  comes  to  bear  directly  upon  him.  In  this  way 
one  producer  aims  ia  his  letter  to  direct  the  quality  argument  at 
the  retailer:  "We  have  built  up  a  demand  for  our  clothes  oa 
the  label.  The  label  has  always  stood  for  quahty — not  merely 
the  Must  as  good'  quality — but  the  best  that  can  be  manufac- 
tured; all  wool  cloth,  one  hundred  per  cent  shrinkage  in  the 
goods  and  expert  operators  in  the  construction.  The  consumer 
has  come  to  expect  this  excellency  of  quality  when  he  sees  our 
label.  Merely  show  him  the  label  on  the  suit  and  your 
customer  knows  you  are  selling  high  grade  clothes.  His  con- 
fidence is  won  v?ithout  your  personal  guarantee  and  you  sell 
him  twice  as  readily."  See  how  the  letter  swings  the  ordinary 
consumer  argument  of  quality  into  an  appeal  to  the  dealer. 
The  argument  marks  the  point  where  quality  means  easy  dis- 
tribution for  the  retailer. 

SCHEME  3— CATCH  PHRASES 

An  original  and  striking  approach  often  wedges  open  a 
path   for  the  heaner  argument  of  the   manufacturer.    Take 


PROPOSITIONS  THAT  CREATE  CURIOSITY  9 

the  catchy  phrase  which  incites  the  dealer's  curiosity,  and 
then  apply  it  to  the  selling  argument.  Here  is  the  way  one 
man  writes:  "The  monkey  who  pulled  the  chestnuts  out  of 
the  fire  got  burned.  There's  no  record  of  his  subsequent 
actions — except,  that  he  didn't  try  to  get  them  the  second  time.** 
Then  the  application  is  shown  ia  this  way:  "The  man  who 
was  'stung*  on  a  suit  of  clothes  is  just  like  the  monkey — and 
he  knows  it  He  won't  come  back  for  another  suit.  There 
are  hundreds  of  men  in  your  town  who  have  bought  and  .'won't 
come  back,'  because  they  didn't  get  theii'  money's  worih.  You 
want  to  handle  clothes  that  give  fuii  value — clothes  that  give 
your  customers  a  dollar's  return  for  every  dollar  they  spend. 
We  are  educating  men  to  know  that  our  garments  stand  fc| 
sinceri^."  In  this  way  the  manufacturer  appeals  to  the  deal' 
er's  desire  for  steady  ciLstomers. 

But  more  important  than  a  striking  approach  is  an  original 
selling  feature  that  will  appeal  to  both  merchant  and  cus- 
tomer. Take  any  new  method  of  distributing  the  goods  to 
the  consumer,  such  as  ofiering  prizes  with  purchases,  or  guaran- 
teeing satisfaction  to  the  consuraer,  or  giving  the  consumer  a 
trial  of  the  goods  with  the  no-pay-if-not-satisfactory  plan  and 
consumer  sales  are  stimulated.  The  dealer  knows  this  fact, 
and  if  you  offer  to  let  hlzn  dispose  of  your  goods  on  any 
one  of  these  selling  plans,  and  then  stand  back  of  him  to 
re-imburse  hira  where  necessary,  you  have  a  powerful  appeal 
to  his  interest. 

SCHEME  4— INSURING  DEALERS  AGAINST  LOSS 

Still  more  forceful  is  the  offer  which  protects  the  retailer 
against  loss  or  risk.  For  example,  you  write  the  dealer:  "Here 
b  a  line  of  goods  that  will  sell  like  hot  cakes.  We  are  con- 
6dent  of  the  demand  they  will  create  and  to  show  you  just 
how  thoroughly  convinced  we  are  of  their  ability  to  draw  trade, 
we  will  make  you  this  remarkable  offer:  We  will  guarantee  td 
buy  back  all  unsold  goods  on  your  shelves  or  in  your  stock  room 
at  the  end  of  the  season,  if  you  feel  that  you  ccnnot  dispose 
of  them."  Here  you  have  offered  the  dealer  everything  to  gain 
and  nothing  to  lose.  It  is  natural  that  he  is  interested  if  his 
capital — his  business — is  absolutely  protected.  Such  an  up- 
peal  is  almost  irresistible. 


10  A  RESULT-GETTING  LETTER 


LET  OBB  or  VOTO  CLERKS  00! 

You  won't  nilBS  him  If  you  are  a  poet  card  dealer  and 
Install  one  of  our  hanging  display  racks. 

This  new  display  fixture  is  almost  ideal  in  that  it 
comhlnes  simplicity  and  durability  of  construction,  heauty  of 
design  and  f ini8h--acceB8a'billty  without, the  sacrifice  of  val- 
uahle  space,  )Eirfd  Enormous  sales  pulling  power. 

With  one  of  these  fixtures  Installed  In  your  store 
each  purchaser  can  wait  on  himself  and  make  purchases  as  con- 
veniently as  with  the  assistance  of  your  clerk.  Price  cards 
conveniently  arranged  give  the  prospectlTO  purchaser  all  necea» 
eary  infoi^ation  and  as  the  stand  revolves  readily  in  any  di- 
rection all  cards  can  be  brought  directly  before  your  customer. 

Hundreds  of  our  patrons  have  testified  to  tho  merits 
of  this  stand.  Mr.  W.  T.  Moore,  Pacolet,  S.  C.  ,  writes:   "I 
bought  one  of  your  display  stands  and  it  has  increased  my  sales 
wonderfully."  Mr.  Casper  Lowe,  Lynbrock,  B.  Y. »  purchased  one 
of  our  Btando  Hot.  11th,  1909,  and  another  7eb.  7th.  1910. 

You  can  have  one  of  these  stands  absolutely  free.  To 
each  of  th^f irst  four  hundred  and  fifty  post  card  dealers  pur- 
chasing one  of  our  assortments  of.fivo  hundred  superior  quality 
post  cards  for  |5.00  r.O.B.  Chicago  we  will  give  a  hanging  dis- 
play rack  beautifully  finished  in  black  enamel  absolutely  free. 

And  the  cards  alone  are  an  excellent  investment,  for 
you  can  realize  a  profit  of  ^7.50  on  your  purchase  price  and  givei 
your  patrons  excellent  value  too.  All  cards  are  guaranteed.   If 
they  are  not  satiofactory  we  will  allow  their  return  and  all 
money  refunded. 

But  you  nruBt  act  now--only  four  hundred  and  fifty 
fisiiortments  remain  on  hand  and  this  value  cannot  be  duplicated 
when  these  are  exhausted. 

We  enoloso  an  addressed  poet  card  with  our  guarantee' 
tor  your  convenienoo.  Kail  it  today. 

Yours  very  truly. 


The  letter  which  seeks  fxt  clinch  the  dealer's  order  by  an  offer  of  some  prize 
with  the  sale  of  the  goods,  is  often  most  effective ;e&peciaUy  when  the  arti- 
cle does  not  involve  too  large  an  ouilap  of  money.  The  above  letter  lays 
more  emphasis  on  the  prize  than  on  the  article  to  be  sold,  depending  on  a 
guarantee  to  give  confidence  of  merit.  A  limited  supply  of  the  particular 
goods  offered  gives  inducement  for  an  early  response 


SCHE]\IES  THAT  LESSEN  THE  DEALER'S  RISKS       11 

Then  take  the  same  guarantee  against  risk  from  the  angle 
of  a  thirty-days*  free  trial,  with  payment  for  the  goods  after  the 
dealer  has  tried  their  selling  power  for  a  certain  period.  The 
effectiveness  of  thb  appeal  lies  in  the  absolute  protection  of  the 
dealer.  The  impression  of  confidence  carried  with  an  offer 
of  goods  without  a  payment  down  at  once  commands  the 
dealer's  confidence.  When  the  goods  are  on  the  shelves  of  the 
dealer,  or  displayed  ia  his  store,  their  sale  is  practically  assured. 

SCHEME  5— THE  FREE  TRIAL 

This  is  a  clinching  appeal.  It  does  not  interfere  in  any 
way  with  any  other  pla,n  of  selling,  but  may  be  used  as  addi- 
tional force  where  the  dealer  is  hard  to  convince.  For  example, 
one  manufacturer  uses  this  letter  argument: 


"You  can  place  our  toilet  soaps  on  display  in  your 
store.  Give  them  prominence  and  arrange  them  attractively.  Wa 
know  the  demand  they  will  create--the  sales  they  will  bring  you. 
To  back  up  our  confidence,  wo  will  put  in  a  stock  for  your  trial 
at  OUR  RISE.  You  sell  them,  collect  your  commission  and  pay  ua 
for  the  stock,  AFTER  you  have  proven  their  sales  value.  You 
Incur  no  obligation.   If  you  find  you  can't  dispose  of  them,  wo 
will  accept  their  return  without  argument." 


This  manufacturer  goes  to  the  very  boundaries  of  "good 
business"  in  his  aim  to  get  the  dealer's  interest. 

SCHEME  6— DIRECTIONS  FOR  DISPLAYING  GOODS 

If  you  remember  that  the  dealer  is  ambitious — that  he  has 
an  inborn  desire  to  increase  his  business,  to  build  it  up  on  a 
substantial  basis,  and  that,  to  satisfy  this  desire,  he  must  sell 
more  goods  secure  more  profits,  you  may  appeal  effectively 
by  giving  him  selling  instruction  in  your  letters.  This  is  a 
subject  that  requires  great  tact,  since  the  opportunity  to 
offend  by  assuming  his  inability  to  sell  is  ever  present. 
To  efifectually  ward  off  possible  offence,  one  manufacturer 
gives  such  information  a  distinct  "news  value'*  and  suggests 
that  it  might  be  applicable. 


12  HELPING  THE  DEALER  SELL 

For  example,   he  writes,   "Our  displcv   expert  last  week 

arranged  a  window  in  B ,  which,  our  dealer  there  tells  us, 

has  pulled  big  results.  It  was  used  in  this  way,"  and  then 
the  letter  describes  how  a  practical  window  display  is  arranged. 
Then  to  show  its  application,  the  letter  suggests,  "Perhaps 
thb  same  scheme  would  be  apphcable  in  your  store.  I  am 
giving  you  this  information  because  I  want  you  to  know 
of  the  most  successful  schema  that  are  being  used  to  insure 
larger  sales."  In  this  way  the  manufacturer  secured  the  in- 
terest of  the  dealer  through  his  evident  desire  to  aid  in  retail 
selling.  Many  concerns  publish  and  send  out  periodic  bul- 
letins or  booklets  filled  with  useful  selling  hints  and  suggestions 
for  the  retailer.  Still  another  concern  offers  the  dealer  a  free 
course  in  salesmanship  for  his  clerksr  supplying  the  .experience 
of  an  expert  for  the  purpose. 

SCHEME  7— LOCAL  NEWSPAPER  ADVERTISING 

Still  another  manufacturer  offers  advertising  assistance  as 
an  inducement.  "You  would  like  to  have  these  goods  adver- 
tised in  your  local  paper  over  ycur  name,  wouldn't  you  ?  Your 
business  v/ould  benefit  greatly  through  any  advertising  over 
your  name  and  address,  if  used  in  your  local  mediums  where 
your  customers  and  your  competitors'  customers  could  see  it. 
We  will  conduct  a  two  months'  advertising  campaign  for  you 
and  in  this  way  keep  customers  coming  to  your  store."  Such 
an  offer  gets  close  to  the  retailer's  heart.  The  plan  not 
only  advertises  the  particular  line  of  goods,  but  it  booms  his 
business  generally.  Another  plan  offers  to  supply  the  dealer 
with  all  his  printed  matter  to  be  used  on  customers. 

SCHEME  8— THE  "PRIVATE  ERAND" 

Often  the  offer  of  goods  made  up  for  a  dealer's  private 
brand,  is  the  inducement  that  gets  his  order.  Take,  for 
instance,  the  letter  offering  to  the  dealer  a  line  of  groceries 
or  shoes  or  merchandise,  marked  with  his  name  and  address, 
or  manufactured  and  put  up  under  the  name  of  his  store; 
then  the  dealer,  who  wants  to  advertise  his  place  of  business, 
and  who  appreciates  the  prestige  that  a  private  brand  gives 
to    his   store,    finds    the    opportunity    he   has    been    looking 


GIVING  rUBLTCITY  TO  THE  DEAI.Ell  13 

for  at  little   or  no  additional  cost  over  similar  goods  he   has 
been  selling. 

SCHEME  »— QUICK  SERVICE 

Service  is  another  argument  to  which  the  dealer  cannot 
remain  deaf.  He  wants  to  know  why  it  will  pay  him  to  get  his 
goods  from  you  rather  than  from  the  other  manufacturer. 
Show  him  that  you  can  make  deliveries,  say,  five  days  quicker; 
that  your  means  of  transportation  insure  belter  treatment  of 
his  goods  en  route;  or  that  your  house  adopts  a  policy  of  abso- 
lute time  limit  shipments,  not  varying  one  day  from  a  fixed 
schedule.  Write  him:  "Your  greatest  problem  is  how  you  may 
get  the  goods  to  your  customers  sooner.  ^Ve  guarantee  a  six- 
day  service;"  or  say  to  him,  "You  would  like  to  make  your 
jobber's  stock  room  an  annex  to  your  store,  wouldn't  you  ? 
Then,  here  is  the  way  you  can  do  it.  Here  is  a  way  you  can 
carry  a  double  stock  of  goods  without  increasing  your  store 
space.  We  give  a  twenty-four  hour  service,  which  enables 
you  to  take  an  order  from  your  customer  and  supply  the  goods 
the  next  day." 

To  carry  this  idea  one  step  further,  the  manufacturer  may 
even  work  upon  the  sentiment  of  the  dealer.  Where  the  sales- 
man writes  the  dealer,  letters  assume  an  intimate  personal 
attitude.  They  appeal  so  strongly  because  the  dealer  is  on 
terms  of  intimacy  with  the  writer.  The  salesman  knows  and 
uses  intimate  points  of  contact  to  strengthen  his  grip  on  the 
dealer's  interest.  The  selling  arguments  he  may  use  in  his 
letters  therefore  carry  unusual  weight. 

SCHEME  10— PERSONAL  ADVICE  FROM  SALESMEN 

"^Tiat  you  need,  is  a  line  of  goods  that  will  answer  this  or 
that  demand  in  your  town,"  the  salesman  says  in  his  letter, 
and  the  <iealer  believes  it  because  he  has  confidence  in  the  sales- 
man. •  He  realizes  that  the  salesman  knows  the  exact  conditions 
of  his  business.  Or  the  salesman  says.  "You  want  to  deal  with 
a  house  that  will  guarantee  you  against  loss  through  overstock- 
ing or  damaged  goods  in  shipment.  Our  concern  will  absolutely 
guarantee  this — I'll  tell  you  frankly  that  you  can  expect  only 
square  dealing'  from  them,"  and  the  dealer  believes  it  because 


14        PROMPT  DELIVERIES  AS  A  SELLING  FACTOR 

he  has  learned  to  put  confidence  in  the  salesman.  "We  are 
watching  out  for  your  interests  as  well  as  ours,"  the  salesman 
writes,  and  the  merchant  is  confident  that  such  b  the  case. 

SCHEME  11— THE  INDUCEMENT  OF  AN  ESTABLISHED  DEMAND 

But  the  effectiveness  of  pressure  on  the  dealer  as  a  method 
of  appeal  overshadows  the  majority  of  other  means  of  approach. 
Pressure  may  be  brought  to  bear  on  the  retailer  to  compel 
his  attention — with  the  alternative  of  his  losing  attractive  profits 
and  evident  customer  trade.  "Take  this  line  of  goods  with 
the  demand  supplied,  or  lose  big  profits,"  is  a  club  which 
forces  the  dealer's  interest.  You  may  go  to  the  consumer 
with  letters  and  create  a  demand  or  trial  sales  or  customers — 
you  build  up  a  trial  order  business  with  the  consumers.  Then 
ofiFer  the  prospects  or  the  established  customers  along 
with  the  bill  of  goods  and  the  dealer  can  hardly  turn 
you  away. 

SCHEME  12— CREATING  A  DEMAND  BY  CIRCULARS 

Or,  you  may  say  to  the  merchant:  "I  am  flooding  the  shoe 
buyers  of  your  town  with  literature,  and  educating  them  to 
know  the  value  of  and  to  want  the  shoes  I  am  manufac- 
turing; I  am  going  to  create  a  big  demand  for  these  shoes 
for  some  dealer.  Do  you  want  the  business — do  you  want 
the  sales  this  demand  will  assure  you  ?  If  you  but  say  the 
word  I  will  direct  these  buyers  to  your  store.  You  must, 
however,  take  a  stock  of  my  goods  to  supply  this  demand, 
because  these  consumers  won't  want  any  other  shoe  be- 
cause I  will  shov;  them  this  is  the  one  best  suited  to  their 
needs.  J  am  not  asking  you  to  buy  a  big  bill  of  shoes — 
just  enough  to  supply  the  wants  of  the  people  I  will  send 
to  you.''  Then  send  customers  to  the  dealer's  store.  He 
cannot  supply  the  goods  because  he  hasn't  them,  but 
let  a  few  more  customers  ask  for  those  specific  goods  and 
leave  his  store  to  ask  for  them  elsewhere,  and  he  will 
come  running  to  stock  up.  It  is  more  than  he  can  stand, 
to  see  business  slipping  away  from  him.  The  pressure 
of  the  possible  business  becomes  too  great  for  his  indiffer- 
ence and  the  problem  of  appeal  is  solved. 


THE  "NEGATIVE  APPEAL"  15 

Even  though  he  does  not  want  to  axld  new  lines,  he 
hates  to  see  his  competitors  getting  the  additional  business. 
He  is  often  persuaded  to  Hsten  to  tlie  manufacturer's  argument 
rather  than  see  the  "dealer  across  the  street"  benefit.  Thus, 
the  surest  method  of  reaching  your  man  may  be  by  a  nega- 
tive appeal. 

In  this  way  the  dealer  is  tactfully  shown  that  if  he  does  not 
take  the  line  a  competitor  will.  But  in  flourishing  the 
•'big  stick,"  the  greatest  tact  must  be  employed.  You 
cannot  say  to  the  dealer,  "If  you  don't  take  this  proposi- 
tion, I'll  offer  it  to  your  competitor  and  let  him  get  an  advan- 
tage over  you,"  because  the  natural  independence  of  the  man 
will  assert  itself  and  he  will  usually  tell  you  to  *'Go  hang  your- 
self," or  something  equally  pertinent.  But  if  you  approach 
him  in  a  smooth  way — covering  the  blunt  threat  with  velvet — 
you  can  secure  cooperation. 

No  matter  how  velvety  the  language  may  be,  the  compelling 
force  of  the  argument  is  evident,  because  of  the  suggestion  that 
unless  the  dealer  takes  over  the  lines  of  goods  he  must  relin- 
quish a  sure  source  of  profit  to  his  competitor.  The  fear 
of  giving  his  competitor  the  advantage  makes  the  appeal 
effective. 

SCHEME  13— GETTING  COMMENDATION  FROM  LOCAL  ORGANIZATIONS 

This  idea  may  be  carried  a  step  further.  A  local  sell- 
ing factor  which  will  compel  the  dealer's  attention  through 
the  fear  of  possible  loss  of  his  other  trade,  may  be  brought 
into  cooperation  with  the  manufacturer.  For  example,  the 
manufacturer  may  secure  the  cooperation  of  a  local  organiza- 
tion or  business  concern  under  promise  of  some  prize  or  finan- 
cial inducement. 

There  is  a  general  principle  that  should  be  observed  by 
manufacturers  in  their  letters  to  dealers.  It  is  to  assume 
different  attitudes  towards  dealers  in  different  sections  of 
the  country.  The  natural  surroundings  of  the  dealer,  the 
atmosphere    and     the    environment,    affect     his    viewpoint. 

If  you  would  reach  the  westerner  most  effectively, 
talk  quantity  to  him.  Speak  in  large  figures,  give  less 
attention  to  details  of  the  argument  and  hammer  on  ser- 
vice. 


j6 LOCATION  MUST  BE  CONSIDERED 

To  the  southerner  talk  cheapness  and  price,  in  your  letters. 
Make  your  references  only  to  small  quantities.  When  writ- 
ing the  easterner  pound  on  the  arguments  that  refer  to 
quality  and  the  superiority  of  your  product  over  other  products, 
assume  that  his  consumers  want  only  quality. 

There  is  yet  another  point  to  remember  in  appealing  to 
dealers  by  letter.  It  lies  in  tlie  mechanical  make-up  of  the  letter. 
This  appeal  is  to  the  senses  of  the  man.  Take  every  procautioa 
to  see  that  your  letters  are  neatly  made  up.  Poorly  written 
letters,  smutty  paper  or  careless  folding  fail  to  carry  the  desiredf 
impression  of  value.  "Make  every  letter  so  perfect  in  its  detail 
that  the  man  who  receives  it  will  know  it  is  a  thing  of  value — 
that  it  was  created  with  great  care — 'ha„  it  is  the  result  of  un- 
usual painstaking  and  that  it  should  be  handled  as  though  it 
were  as  valuable  as  the  priceless  vase  or  jewel,"  is  the  instruc- 
tion a  western  manufacturer  gives  to  his  correspondents. 

In  the  same  way,  make  your  English  unquestionable.  A 
certain  colloquial  tone  without  sacrifice  of  dignity  adds  fofce, 
because  it  ge's  more  nearly  on  the  level  of  the  dealer. 

In  seeking  to  reach  the  dealer  and  secure  his  interest 
and  cooperation  you  must  first  consider  the  man  and  his  bus- 
iqess.  You  must  adopt  his  viewpoint  and  talk  "profits"  for  his 
business.  You  must  adopt  his  viewpoint  when  you  argue  that 
your  product  is  the  goods  he  wants  to  handle.  Yoa  must  aim 
to  aid  him  in  his  work  of  distribution.  Then  you  will  secure 
the  finer  appeal  that  the  manufacturer^  letter  shouki  convey. 


How  To  Get  Business^!/  Mail 

From  Dealers 

PART  XI  HOW  TO  GET  BUSINESS  FROM  DEALERS        CHAPTER  50 

THE  AVERAGE  retailer  has  a  natural  mistrust 
of  new  and  untried  goods.  He  is  prejudiced  in 
favor  of  lines  he  has  already  handled.  He  is 
correspondingly  reluctant  to  consider  new  propo- 
sitions. To  overcome  this  inertia  the  manidac- 
turer  must  resort  to  unique  talking  points.  Mere 
are  some  successful  ways  of  presenting  these  points 
in  letters 

THE  average  produet  follows  an  established  route  between 
factory  and  consumer.  Midway  on  this  route  stands 
the  retailer.  The  product  stops  on  his  shelves  until 
it  is  handed  out  to  the  consumer. 

From  the  standpoint  of  the  manufacturer  the  biggest  prob- 
lem is  to  interest  the  retailer.  In  all  probability  this  retailer 
cares  nothing  for  a  new  proposition.  He  does  not  want  to  load 
himself  up  with  more  stock;  he  does  not  want  to  tie  up  more 
capital  in  his  business;  he  is  prejudiced  in  favor  of  the  goods 
and  the  brands  that  he  has  always  handled;  he  is  doubtful  of 
the  demand  that  there  may  be  for  the  new  product.  So  preju- 
diced is  he  against  new  lines  that  he  is  reluctant  to  give  the 
manufacturer's  proposition  a  hearing. 

To  overcome  this  inertia  and  secure  the  cooperation  of 
the  merchant  it  is  necessary  to  have  some  unique  talking  point, 
some  unusual  feature  or  some  material  inducement  that  will 
appeal  to  his  bankbook.  The  manufacturer  who  goes  on 
the  market  with  a  new  product  may  start  his  campaign .  with 
advertising  in  newspapers  and  magazines  to  create  a  demand 
among  the  consumers  and  then  go  to  the  dealers  with  a  force 

17 


18  OFFER  A  PRIZE  TO  DEALERS 

of  salesmen  to  secure  their  orders,  but  this  method  is  expensive 
and  not  always  successful,  and  so,  in  many  cases,  the  letter  has 
been  substituted  for  the  salesman,  for  the  letter  does  the  work 
at  a  cost  which  enables  the  manufacturer  to  cover  a  large  terri- 
tory quickly. 

As  is  pointed  out  in  the  chapters  on  Opening  New  Terri- 
tory, the  appeal  to  the  consumer  must  be  on  the  quality  of  the 
goods  or  some  improvement  or  novel  feature,  while  the  sole 
appeal  to  the  dealer  is  customers — sales — profits.  And  to 
reach  him  by  letter  the  manufacturer  or  tlie  wholesaler  must 
have  some  original  scheme  or  some  cash-register  inducement 
that  will  call  forth  an  order.  The  letters  to  the  dealer  must 
hammer  on  three  points:  the  fact  that  there  is  a  demand  for 
the  goods;  that  the  merit  of  the  produet  assures  satisfaction, 
and  that  the  dealer  will  have  certain  profits.  As  few  goods  are 
sold  by  a  single  letter,  these  different  arguments  may  be  used 
in  a  series  of  follow-up  letters,  but  arguments  alone  will  win 
comparatively  few  orders.  There  must  be  specific  schemes 
and  unusual  inducements  if  orders  are  to  be  pulled  by  mail, 
and  this  chapter  takes  up  schemes  that  have  proved  success- 
ful— schemes  that  have  sold  goods  and  converted  a  trial  order 
merchant  into  a  steady  customer. 

First  and  last,  the  only  proposition  that  grips  the  merchant 
is  some  practical  assistance  in  moving  the  goods.  The  most 
familiar  plan  is  cooperation  in  advertising,  the  manufacturer 
furnishing  booklets,  cards,  posters  and  cuts,  or  paying  for 
ad,vertising,  or  sending  out  letters  to  prospects. 

This  prize-with-dealer's-order  scheme  may  apply  to  any 
article  of  every-day  demand.  Take  for  instance  the  sale  of 
post  cards  to  retailers  and  stationers.  One  manufacturer 
opens  his  letter  in  this  way: 


•"There  ere  one  hundred  and  forty-two  pest  c&rd  dealers 
en  our  booka  who  r.ave  written  us  personal  letters  stating  that 
our  special  display  raoka  have  aicro  tiian  doubled  their  Bales 
th9  past  three  months.  That's  why  this  letter  ia  of  vital  iia- 
portance  to  you  who  ere  trying  in  every  fay  to  insrcaee-your 
fcp.les  and  elin:infite  personal  labor  at  the  ease  time. 

"Think  of  hundreds  of  people?  rho  vleit  ycur  store  end 
»ho  would  purchase  post  cards  if  a  larce  diopiay  were  forcitly 


PRIZES  OF  FREE  GOODS  19 

brought  to  their  attention.   This  is  exaotly  what  the  rack  do«« 
for  you.  WB  SEHD  IT  FR5B  OP  CHAKGB  with  every  order  of  1  loa 
dollars  and  over.  You  usa  it  and  keep  it  as  long  as  ycu  cuctlnae 
to  3oll  our  cards. 

"He  bavo  fivo-hu.Tdrod-card  assortmento  consictius  of 
tn  enormoua  variety  of  fancy.  Tiew.  huBoroua,  air  hrueh,  birth- 
day and  greeting  cards  at  J5.00  F.  0.  B.  Chicaeo.   Theas  carda 
are  fully  guaranteed  in  all  reapecta  and  If  the  BEeortnient  dcea 
not  fully  meet  your  requirenente  and  please  you  we  will  ccn- 
slder  it  a  favor  to  have  the  entire  ehipment  returned.  Only 
two  hundred  and  twenty-five  of  these  aasortmenta  remain  on 
hand.   You  must  act  today  If  you  want  one.   Simply  mark  an  (7> 
on  the  enclosed  addreaaed  post  card  and  nail  it  today.   Stand 
and  cards  will  go  forward  at  once." 


The  guarantee  of  satisfaction  reassures  the  dealer  and  the 
limited  number  of  sets  available  is  a  do-it-now  spur  that  induces 
the  reader  to  reach  for  his  pen  at  once. 

A  clothing  manufacturer  put  it  up  to  the  merchant  in  this 
way: 


"  In  this  letter  you  will  f inl  a  special  offer  cf 
a  fine  custom  made  suit  of  clothes  free  of  C08t--'but  this  was 
not  the  message  we  started  to  give  you.  You  need  help  in  push- 
ing sales  of  clothes.  When  a  dealer  puts  Sackman  clothes  on  his 
shelves  we  help  him  sell  them.  We  help  him  adverti88--send  us 
lists  of  customers  and  we  will  write  them  letters  and  send  theai 
etyle  hoo'jilets.   You  want  cuts  for  your  local  newspaper  adver- 
tising to  make  it  distinctive  t»nd  appealins  and  »:e  will  supply 
them  for  you. 

"  But  here's  the  poiiit--wa' re  eoing  to  offer  you 
more--for  a  short  period.  For  tho  next  fifteen  days  we  are  go- 
ing to  give  with  every  two  hundred  dollar  order  of  clothes,  a 
fine  tailored  cult  to  the  dealer  FREB.  Te  will  send  samples 
of  cloth  for  ycu  to  select  from  and  promise  you  one  of  the  hand- 
somest suits  you  ever  wore.   This  offer  is  dated  from  August 
■^enth.   That  means  that  to  get  the  suit,  your  order  miiat  reach 
US  before  the  twenty-fifth.  An  order  blank  ie  enclosed.   Sign 
the  blank  today  and  mail  to  ueT,   Tomorrow  ycu  bfesin  getting  the 
eellln?  service  for  tie  clothes,  and  within  ter.  days  ycu  have  a 
suit  in  addition  r 


A  present  with  every  purchase  of  considerable  size  often 
plays  up>on  the  dealer's  desire  for  "goods  that  he  can  get  for 
nothing."    It  has  been  proved  in   many  instances  that  an 


20  GIVING  PRESENTS  TO  CUSTOMERS 


offer  of  a  small  quantity  of  the  goods  free  tvitii  the  regufer 
orders  of  a  certain  amount,  will  swing  the  sale  more 
readily  than  an  offer  of  a  discount  or  a  cut  rate  equivalent 
to  the  value  of  the  present.  This  is  because  of  the  impres- 
sion of  inferiority  carried  by  the  cut  price  and  special  dis- 
count. To  cut  rates  implies  that  there  is  not  suScient  de- 
mand for  the  product.  Along  this  line  of  appeal  was  an 
offer  by  a  soap  manufacturer: 


"With  o'T'ery  twenty  cases  of  our  Violet  Brand  soap,  we 
win  give  you  on©  case  absolutely  free   Your  sales  on  this  ad- 
ditional case  will  'brine  you  a  clean  prolit   You  will  need 
fully  twenty  cases  and  by  ordering  that  number  at  one  time  you 
will  secure  this  valuable  cresent  " 


Still  another  scheme  of  giving  presents  with  purchases  of 
goods  has  been  used  by  manufacturers.  It  is  to  offer  a  present 
with  each  purchase — an  inducement  to  get  customers  into  the 
dealer's  store.    This  letter  was  used  by  a  shoe  dealer: 


"You  want  more  customers.  You  want  more  eale8--and 
the  profits  they  bring  you.  We  have  decided  to  offer  a  present 
with  every  pair  of  our  shoes  purchased  in  your  store.  It  is  a 
newly  patented  shining  outfit.   It  consists  of  a  box  of  the  best 
grade  Shinum  on  the  market,  a  fine  bristle  brush  and  a  lambs 
wool  shiner.   This  is  an  attractive  and  valuable  present.  It  la 
the  very  thing  every  shoe  buyer  wants.  Your  sales  will  Jump 
fifty  per  cent  through  the  Inducement  of  this  present  and  the 
quality  of  the  leather  and  the  workmanship  In  our  shoeo  will 
■bring  the  customers  back." 


To  make  the  prize  offer  more  generally  effective,  a  special 
advertising  campaign  was  outlined.  This  campaign  was  used 
as  a  fiirther  inducement: 


"Your  p^roflts  on  soap  sales  are  limited.  You  can't 
«ell  more  soap  without  some  inducement  to  bring  in  more  buyers-- 
new  customers.  During  the  summer  we  are  going  to  give  away  base 
"balls  to  the  boys  of  your  town  who  save  our  seals.  They  can't 
get  the  seals  unless  their  mothers  buy  this  aoap,  but  that  free 


TRIAL  OFFERS  TO  PROVE  QUALITY 21 

baseball  (and  It  la  well  made)  will  have  every  boy  teasing  his 
mother  to  buy  this  eoap.  Each  cake  of  Pure  Cream  soap  contains  & 
seal.  Five  seals  call  for  a  baoe  bell.  These  prize  base  balls 
are  furnished  by  us  and  sent  to  you  with  the  case  of  soap- -send 
In  the  order  today  and  have  every  boy  in  town  plug  for  your 
store. 

"Vo   will  advortlsa  Para  Cream  soap  and  the  free  base 
balls  In  your  local  papers.  Tou  want  to  be  one  of  the  retailers 
handling  it.  The  enclosed  order  blank  includes  the  special  offer. 
You  need  only  write  your  name  at  the  bottom  and  the  trial  case  oj 
soap  will  be  sent  at  once.  Unless  you  want  your  competitors  to 
reap  the  harvest  of  this  caEpalgn,  fill  out  the  blank  and  mail 
to  US  today. " 


One  of  the  most  effective  schemes  for  clinching  the  dealer's 
order  is  to  guarantee  sales — to  OiTer  him  the  privilege  of 
returning  unsold  goods  at  the  end  of  a  certain  period 
in  case  he  so  desires.  A  wholesale  mercantile  house, 
which  aimed  to  put  out  a  line  of  hosiery  selling  for  more  money 
than  the  average  brands  because  of  a  new  feature  in  its  manu- 
facture, sent  out  this  letter: 


"When  you  order  a  stocic  of  hosiery  you  never  know  just 
how  long  there  will  be  a  demand  for  that  particular  grade  of 
goods.  You  may  have  to  dispose  of  any  surplus  stock  by  selling 
at  reduced  prices,  cutting  your  profits,  and  there  is  always  the 
chance  that  you  will  lose  money  on  the  order 

"So  certain  are  we  of  the  demand  for  Elwood  brand 
hosiery,  which  is  made  with  a  double  wo-sen  heel  and  toe  that  we 
are  prepared  to  protect  you  ab3olutely--to  guarantee  you  a  sat- 
isfactory sale  on  Elwood  brand  and  make  this  exceptional  offer: 
We  guarantee  to  take  back  all  unsold  goods,  and  refund  your  money 
at  the  end  of  the  season,  if  you  feel  that  you  do  not  wish  to 
carry  them  longer. " 


The  dealer,  given  confidence  by  the  guarantee  from  the 
manufacturer,  is  made  to  feci  that  he  is  taking  small  risk.  The 
sale  of  the  goods  js  practically  assured  and  seldom  are  unsold 
goods  returned  at  the  close  of  the  season. 

A  thirty-day  trial  offer  is  one  of  the  most  effective  argu- 
ments in  a  "selling  campaign.  It  is  an  absolute  guarantee  that 
can  be  adapted  so  that  it  will  not  conflict  with  the  working  of 
any  other  limited  offer  or  scheme  of  a  temporary  nature.  Fol- 
lowing arguments  consis^nt  with  good  quality  and  economical 


22  PLAYING  UP  DISTINGUISHING  FEATURE 

value,  this  scheme  frequently  proves  the  final  inducement  to 
bring  the  sale.  It  adjusts  itself  to  almost  any  product.  A 
concrete  illustration  is  found  in  the  letter  of  a  tooth  brush 
manufacturer  who  WTote  the  dealers: 


"By  accepting  our  30-day  trial  offer,  you  can  prcve  for 
yourself  that  the  Olire  tooth  brush  is  all  that  we  claim  for  it. 
Just  to  convince  you  that  it  will  aell  even  more  readily  than  wo 
have  claimed,  we  agree  to  fill  thia  order  on  a  30-day  free  trial 
taals.   If  for  any  reason  you  do  not  wish  to  continue  selling 
thi3  brand  of  brushes  after  the  30-day  trial--simply  ship  hack 
the  unsold  part  of  the  order  at  our  expense  and  mail  us  a  check 
for  the  brushes  you  have  sold. " 


There  can  be  no  more  effective  way  of  securing  the 
dealer's  confidence.  He  takes  no  risk,  incurs  no  expense, 
and  until  the  end  of  the  thirty  days  may  sell  the  article  and 
collect  his  profits  without  incurring  any  responsibihty. 

A  special  feature  or  distinguishing  characteristic  furnishes 
a  selling  argument  that  is  most  advantageous,  and  manu- 
facturers frequently  add  attachments  to  machines  or  put 
on  some  new  apphance  with  the  primary  object  of  pro- 
viding a  talking  point.  The  attachment  may  be  something 
that  is  very  seldom  used,  but  it  gives  a  distinguishing  char- 
acteristic that  tips  the  scale  in  favor  of  that  particular  ma- 
chine or  device. 

A  manufacturer  whose  sales  failed  to  come  up  to  expecta- 
tions added  a  distinguishing  feature  and  wrote  this  letter 
to  dealers: 


"A  good  safety  razor  must  fill  every  demand  of  the  man 
vho  uses  it  or  your  sale  will  be  small.  Every  good  safety  razor 
should  be  made  to  come  apart  easily  in  order  to  cleanse  It.  If 
it  doesn't  the  razor  will  rust  and  your  customers  will  bo  dis- 
satisfied. The  Sanito  safety  razor  permits  the  ub-o  of  the  blado 
as  though  it  wore  a  straight,  old  fashioned  razor,  for"  times 
when  the  man  using  it  wants  to  trim  about  hie  beard.  -Cntil  you 
have  a  razor  with  all  these  appliances  you  won't  bo  able  to  eell 
half  the  men  in  your  town." 


GETTING  DEALERS'  NAMES  FROM  CONSUMERS      23 

The  dealer  was  plied  with  these  arguments  on  the  spe- 
cial selling  features  of  the  article,  and  in  addition  to  the  letters, 
all  inquiries  coming  to  the  manufacturer  from  consumers  as  the 
result  of  the  advertising  were  forwarded  to  him.  Then  the  sale- 
clinching  letter  followed: 


"Sahlto  razors  come  apart  by  sliaply  preielng  a  small 
spring  on  ihd  olde-and  may  "be  cleaned  and  dried  e&ally.  It  takes 
only  a  moment.  The  Sanito  baa  an  aujclllary  handle  which  permits 
the  use  of  the  h'lade  as  a  straight  razor.  This  makes  it  equal  to 
every  etoergferrcy.  And  icen  vrill  appreciate  this  fact.  You  want  to 
eeli  thi»  razor;  you  want  the  additional  salea  and  profits  that  a 
POPULAR  RAZOK  with  a  POPULAR  FBICS  will  hrins  you.  " 

The  special  feature  of  the  article  rendering  it  more 
adaptable  to  the  needs  of  buyers,  may  be  played  upon  to 
get  the  dealer's  order.  The  campaign  of  the  razor  manufac- 
turer is  an  example  of  how  the  special  selling  feature  may  be 
used.    The  scheme  adjusts  itself  as  readily  to  other  devices. 

Through  a  direct  appeal  to  women,  a  wholesaler  of  a  new 
brand  of  codfish  secured  an  effective  approach  for  his  letters 
to  dealers.  He  offered  a  five-pound  box  of  XX  brand  codfish 
to  any  one  who  sent  in  a  cooking  receipt. 

When  a  cooking  receipt  came  from  the  housewife,  he 
immediately  wrote,  thanking  her  for  it,  and  explaining  the 
proposition  which  hooked  up  with  a  selling  scheme  this 
way: 


"Of  course  you  know  that  we  nerer  distribute  direct  to 
consumers.  We  send  the  prize  box  of  fieh  to  dealers  who  distrib- 
ute them.  So  if  you  will  send  us  tho  name  of  your  regular  grocer 
wo  will  mail  him  the  codfish  and  give  hia  instructions  to  deliver 
to  you.  *• 

In  this  way  the  name  of  the  dealer  was  secured  and  a  wide 
opening  made  through  which  to  get  his  business.  A  letter  ac- 
companying the  prize  codfish  told  the  dealer,  "We  are  sending 
you  a  box  of  our  extra  fine  brand  of  codfish,  which  is  creating  so 
much  interest  all  over  the  country,  and  ask  that  you  give  it 
to  Mrs.  Blank  when  she  calls."  Then  a  special  proposition 
was  made  to  the  dealer,  pointing  out  the  desirability  of 
carrying  XX  iu  stock. 


24      THE  LURE  OF  THE  "PRIVATE  BRAND" 

A  series  of  dealer  letters  followed  the  sending  of  a  prize 
box  of  fish,  and  so  eflFective  was  the  approach  that  this  par- 
ticular wholesaler  sold  over  forty  per  cent  of  the  dealers 
written. 

The  scheme  is  not  limited  to  one  product.  It  is  applicable 
to  any  food  stuff  sold  through  dealers  to  consumers. 

Originality  in  the  letter  itself  is  often  effective  as  an  order- 
getter.  A  Boston  wholesale  grocer  employed  a  scheme  in 
his  letters  to  give  an  added  impression  of  value  to  a  brand 
of  sardines  which  were  purchased  through  a  London 
broker.  So  instead  of  writing  the  dealers  personally,  he  sent 
out  letters  over  the  signature  of  the  London  broker  and  on  the 
brokers  personal  stationery.  This  letter  recommended  that 
particular  brand  of  sardines,  called  attention  to  the  whole- 
saler as  the  local  jobber,  and  gave  the  dealer  confidence. 
Then  the  wholesaler  followed  this  up  with  a  personal  letter 
which  produced  the  desired  results.  The  foreign  mailed 
letter  held  an  unusual  appeal  to  the  dealer,  and  seemed  to 
impress  him  with  the  fine  quality  of  the  sardines. 

As  a  direct  approach  to  the  dealer  by  the  manufacturer, 
the  offer  of  a  "Private  Brand"  of  goods  is  very  effective.  This 
scheme  gives  the  manufacturer  an  appealing  argument  for 
his  goods  without  preliminary  creation  of  consumer  demand. 
It  offers  the  dealer  an  opportunity  to  adjust  the  goods  to  his 
particular  business  and  to  put  his  personal  O.  K.  on  the  product. 
Price  is  also  a  strong  argument  in  this  scheme,  since  the  manu- 
facturer is  usually  willing  to  quote  a  lower  price  when  a  con- 
siderable quantity  of  goods  are  sold  under  contract. 

While  this  scheme  may  or  may  not  be  backed  up  by  an  offer 
of  the  manufacturer  to  aid  the  dealer  in  turning  the  goods  by 
advertising,  circularizinrj  or  store  display,  it  is  usually  a  strong 
inducement  to  clinch  the  dealer's  business. 

Although  it  is  evident  that  every  scheme  for  getting  the 
dealer's  business  must  be  twisted  and  moulded  to  suit  condi- 
tions in  the  selling  field  and  in  the  manufacturer's  business, 
these  examples  outline  the  fundamental  principles  of  several 
successful  campaigns. 


Getting  Business  From  Four- 
Comer  Towns 

PART  XI         HOW  TO  GET  BUSINESS  FROM  DEALERS         CHAPTER  51 

IN  EVERY  state  there  are  hundreds  of  Utile  coun- 
try merchants f  situated  off  the  main  highways  of 
business^  w}wse  orders  most  manufacturers  and 
jobbers  never  solicit.  These  are  the  obscure  cross- 
roads dealers  on  whom  salesmen  seldom  call 
because  of  the  difficulty  of  reaching  them.  Al- 
though 'practically  inaccessible,  each  is  usually  in 
the  heart  of  a  prosperous  farming  community — 
the  center  of  a  cluster  of  homes.  Yet  a  great 
bulk  of  his  trade  can  be  handled  by  mail— by 
methods  explained  in  this  chapter 

TAKE  your  map  of  Illinois,  or  Pennsylvania,  or  Nebraska, 
and  run  your  finger  down  one  of  the  railroad  lines. 
You  will  find  familiar  names  that  appear  on  the 
salesman's  order  blanks.  But  on  the  branch  lines  and  in  the 
open  spaces  in  light  face  type  you  will  find  Roseville  and 
Middle  Creek  and  Brown  Center.  Look  up  their  population 
and  you  will  find  their  inhabitants  number  anywhere  from 
twenty  to  two  hundred  and  twenty.  Your  order  blanks  show 
no  records  of  sales  in  these  towns,  or  at  most  records  are 
widely  separated. 

The  business  of  the  four-corner  town  merchant  has  not 
been  extensively  cultivated  by  the  majority  of  manufac- 
turers. His  stock  is  usually  so  meager  and  his  orders  so 
small  that  an  expensive  salesman's  visit  is  not  warranted. 
Then  the  salesman  usually  steers  clear  of  this  class  of  deal- 
ers for  the  trip  over  country  roads  requires  too  much  time. 

25 


23       WHERE  TO  GET  USTS  OF  SMALL  RETAILERS 

Frequently  it  would  be  necessary  to  insist  upon  cash  orders, 
for  the  merchant  may  not  be  rated,  or  his  rating  may  be  too 
low  to  allow  a  line  of  credit. 

But  the  small  dealer's  business  can  be  secured,  provided  he 
is  solicited  in  the  right  way.  In  fact,  here  is  a  large  field, 
entirely  neglected  by  hundreds  of  concerns  that  might  get 
in  on  this  extra  business  if  they  went  after  it  in  an  enlightened 
and  systematic  way.  It  is  a  primary  necessity,  however,  that 
the  product  is  one  for  which  a  demand  already  exists  or  can  be 
easily  created — staples  that  are  in  use  everywhere. 

Practically  all  this  businiess  is  now  secured  by  general  mail- 
order houses,  simply  because  they  are  the  only  concerns  that 
have  made  any  real  effort  to  get  it.  There  is  no  reason  why 
the  manufacturer  could  not  adept  the  mail-order  plan  of  getting 
this  business  and  thereby  add  a  desirable  outfet  for  his  goods. 
He  can  organize  a  small  mail-order  department  as  an  adjunct 
to  his  regular  selling  plan.  Nor  is  this  a  difficult  problem. 
It  b  highly  profitable,  because  the  selling  costs  are  so 
small. 

To  start  such  a  department  you  must  have  the  names  and 
addresses  of  dealers  not  reached  by  regular  salesmen.  Then 
you  must  Ikt  and  classify  these  names.  Names  may  be  copied 
from  mercantile  agency  books  but  they  list  the  names  of  only 
the  larger  merchants.  A  more  detailed  method,  though 
more  thorough,  is  to  write  to  bankers,  or  newspaper  men,  or 
railroad  station  agents,  and  ask  for  the  names  of  storekeepers 
removed  from  the  main  business  centers.  The  merchants  must 
have  dealings  with  some  bank  in  the  adjacent  town,  they  must 
get  supplies  from  railroads,  and  they  often  advertise  in  the  coun- 
try papers.  In  asking  for  the  names  it  is  well  to  state  frankly 
the  purpose  for  which  you  want  the  names,  for  while  country 
business  men  are  usually  very  accommodating  in  such  matters, 
they  are  suspicious  of  city  business  methods.  Some  concerns 
pay  a  small  sum  for  lists  of  names  or  send  some  souvenir  that 
the  recipient  will  appreciate. 

A  third  method  is  to  advertise  for  names.  With  maga- 
zines as  a  medium,  one  sales  manager  used  this  copy: 
"This  ofTer  is  for  small  town  retail  merchants,"  and  then  fol- 
lows the  specific  proposition;  "If  you  have  trouble  in  getting 
trade,  or  if  you  have  difficulty  in  holding  customers,  I  can  help 
you.    My  business  is  supplpng  Small  country  merchants  with 


THE  PERSONAL  VERSUS  THE  FORM  LETTER 


27 


helpful  hints  on  how  to  attract  trade  by  window  and  store  dis- 
plays, and  how  to  hold  trade  against  the  competition  of  city 
bargain  counters.  There  is  no  charge  for  this  information 
which  includes  a  200-page  booklet  telling  how  to  run  a  retail 
store  successfully.  Write  for  the-  booklet."  The  names  of 
merchants  who  asked  for  this  information  form  the  basis  of 
a  prospects'  list. 

The  names  must  be  classified.  The  best  method  is  to  list 
them  on  cards,  to  which  may  later  be  added  such  special  in- 
formation  as  specific  business  conditions,  shipping  routes, 
literature  used  on  each  customer,  and  sales  records. 


PRtPAAATlOM 


RCACHING  SMALL 
DEALERS  BY  MAIL 


INOUCfNO.OAOCnS 


f 

1 

1 

1 

ci.*9^>.<ca.iON 

NATi^aC  o*  A*mt»\. 

0*«(MI.*d  CA«V 

1 

I 

1 

ttCTTCM  »«.C<» 

•'".:',":".'*" 

GOODS  NflOCD 

•«  ST«rrs 

1 

1 

1 

MtSC«MT*V 

•  ilTia   »<K«<CI 

o*»^i^r 

adOflA  AvAMM* 

1 

I 

1 

«..CO-O.T.O« 

«*«*(r*  or  oooe« 

•AVIit«  ^i.AM« 

l*l»T«WCVlO«« 

1 

wcc,  •.:„,.,. 

1 

1 

Mi«  mto*<c*4* 

*:r,?rc°." 

«"  —  ■ " 

But  these  are  all  preliminary  steps  to  gain  the  dealer's 
interest  and  confidence;  to  induce  him  to  buy  your  product 
and  make  sure  of  his  continuous  trade — these  are  the  real 
problems. 

It  must  be  remembered  that  the  little  merchant  is  usually 
deluged  with  printed  matter,  catalogues  and  price  lists  of  every 
description  and  letters  from  regular  mail-order  houses.  Unless 
a  letter  carries  with  it  an  impression  of  the  personal  message — 
unless  it  implies  that  it  is  for  his  reading  alone,  he  sends  it 
straight  to  the  waste  basket,  or  else  he  tosses  it  into  a  pile  of 
accumulated  circulars  to  be  looked  over  later — a  time  that 
nevei  com.es. 


58  KNO\M.EDGE  OF  LOCAL  CONDITIONS 

It  is  only  the  letter  under  first  class  posLige  which  carries 
the  impression  of  the  personal  message.  Give  your  letter 
the  more  effective  appeal  of  the  two-cent  mailing.  Where 
the  proposition  involves  as  large  an  outlay  as  an  order  of  stock 
from  a  merchant,  every  possible  detail  which  may  add  force 
to  the  appeal,  must  be  carefully  weighed.  The  four-corners* 
merchant  has  learned  to  "spot"  a  form  letter,  and  it  is  a  mistake 
to  send  him  a  circular  letter,  poorly  filled  in,  or  carelessly  signed, 
in  the  belief  that  he  will  think  it  a  personal  message.  He 
knows  the  difference,  and  a  printed  page  or  an  undisguised 
general  communication  makes  a  better  impression  than  a 
"sloppy"  form  letter. 

Before  you  approacn  the  small  dealer  with  your  proposi- 
tion, you  must  know  your  man.  You  must  know  the  condi- 
tions surrounding  his  business,  his  problems  and  his  limitations. 
The  difficulties  he  encounters  in  selling — the  obstacles  that 
hinder  the  development  of  his  business — are  unlike  those  of  any 
other  class  of  dealers.  Usually  he  has  no  adequate  stock  room, 
no  attractive  display  space,  and  frequently  insufficient  capital 
to  buy  a  large  stock  of  any  line,  even  though  he  might  want 
to.  He  must  fight  against  great  odds  in  competition.  Mail- 
order houses  are  his  greatest  bugbear,  because  they  often  take 
the  cream  of  his  customers'  trade — leaving  him  only  the  emer- 
gency accommodation  business.  Then  he  must  fight  to  keep 
his  customers'  patronage  and  discourage  their  periodic  trips 
to  the  county  seat  or  near-by  city  stores.  Besides,  he  has  no 
adequate  medium  of  attracting  trade  as  has  the  town  merchant 
with  his  newspaper  advertising.  All  these  problems  you  must 
know  and  understand.  You  must  be  a  merchant  at  heart 
if  you  would  talk  understandingly  to  the  merchant. 

A  sentence,  or  a  phrase,  or  even  one  word,  may  betray 
to  the  merchant  the  fact  that  the  writer  of  the  letter  fails  to 
appreciate  his  specific  business  problems,  and  thus  kill  tlie  other- 
wise effective  a'rgument.  Hence  the  importance  of  knowing 
tiiese  conditions.  Take  for  instance  the  argument  intended 
to  persuade  the  dealer  that  a  certain  brand  of  soaps  will 
best  meet  the  needs  of  his  customers.  Here  a  suggestion  that 
he  order  a  quantity  out  of  keeping  with  the  demand  shows 
him  that  you  fail  to  appreciate  how  small  his  trade  is.  Or  the 
suggestion  that  a  quantity  of  cut  glass  dishes  be  added  to  his 
stock  of  glassware,  when  it  is  only  in  rare  cases  that  the  cross- 


THE  ARGUMENT  OF  "MORE  PROFITS"  29 

roads  merchant  has  a  call  for  such  an  article,  immediately 
convinces  him  that  you  fail  to  understand  his  class  of  trade. 
A  loss  of  confidence  is  the  natural  result.  All  other  advice 
becomes  valueless. 

In  your  letters  that  seek  to  carry  an  element  of  per- 
sonality, keep  to  the  level  of  the  country  merchant.  Don't 
shoot  over  his  head;  for  instance,  don't  use  the  same  phrase- 
ology that  you  would  employ  when  you  address  a  city  banker. 
Convey  the  message  to  the  little  dealer  in  phraseology  with 
which  he  is  familiar;  use  colloquialisms  without  sacrifice  of 
dignity. 

It  is  always  human  interest  that  reaches  out  and  touches 
the  cross-roads  merchant — the  letter  that  dips  into  the  midst 
of  his  interests  is  frank,  homely,  personal  and  enthusiastic. 
Keep  to  these  standards  in  your  message  and  you  will  drive 
the  argument  straight  through  the  dealer's  natural  conserva- 
tism. 

Your  letter  must  strike  a  vital  point  in  his  business  in  its 
opening  paragraph.  To  secure  an  effective  angle  on  which 
to  base  your  approach,  consider  the  things  which  most  vitally 
interest  him.  Like  his  city  competitor  he  wants  to  enlarge 
his  business.    He  wants  to  get  more  sales  and  profits. 

His  ever  insufficient  capital  gives  an  opening  for  this  letter 
to  reach, him  effectively: 


"You  say  you  have  no  money  for  additionax  stock?  How 
much,  have  you  tied  up  in  stickers?  One  dollar  in  goods  that 
sell  means  more  than  two  dollars  in  goods  that  stay  on  the 
shelves.  You  are  prohably  planning. to  huy  in  some  one  of  the 
lines  you  carry.  Why  buy  so  nuch?  Why  not  put  soma  of  the 
money  in  other  goods,  investing  no  more  in  the  old  line  than  you 
know  will  he  enough  to  supply  your  trade  until  you  can  huy  more? 
Put  the  money  saved  in  this  way  into  a  line  of  goods  that  you 
know  will  sell--that  will  bring  you  a  good  profit.  Then  you  get 
profits  on  two  lines  instead  of  one   Gold  Club  Jlour  gives  you 
a  very  good  profit,  and  it  eells.   It  brings  customers  back  to 
you  for  mors  because  it  makes  the  best  bread,  the  best  pies  and 
the  beet  cakes. * 


Another  letter  strikes  directly  at  the  small  dealer  with  argu* 
ments  showing  the  advantages  of  buying  by  mail: 


80  WHERE  TO  SELL  BROKEN  T,OTS 


"Did  you  ever  think  how  much  you  pay  to  have  a  salea 
Ban  cill  on  you?  Here'o  a  plain  statement  of  fact  that  cay  oper. 
your  eyes.  Every  tiae  a  salesman  takes  the  expensive  dri^e  out 
to  ycur  place,  his  house  adds  the  coBt  of  the  trip  to  the  goods 
you  get.  Every  time  that  high  priced  nan  spends  a  day  with  you 
his  salary  is  Just  added  to  the  cost  of  the  goods.  Our  catalcjus 
is  OUH  oalesaan.   It  la  ALWAYS  WITH  YCU.   It  Is  clear,  logical 
ahd  specific.   It  tells  about  our  goodo  better  than  a  saleemen 
could  and  it  costs  one-flftleth  as  much.   But  we  don't  save  the 
difference.   We  glva  it  to  you.   Wo  cut  the  price  on  the  goods 
you  get  Just  that  much. " 


And  stiil  another  letter  aims  to  wedge  some  orders  into  the 
small  dealer's  store  between  the  infrequent  calls  of  competing 
concerns'  salesmen: 


"There  is  only  one  way  for  you  to  carry  more  lines  of 
goods  witU  a  limited  capital.  You  must  buy  in  small  quantities 
and  often.  You  don't  need  a  hundred  paire  of  overalls--you  don't 
need  a  dozen  barrels  of  A-ougar.  You  buy  five  times  as  much  as 
your  Icmediata  demand  reijulres  if  you  buy  of  sale6men--becau3a 
ho  can't  get  to  you  often.  You  buy  from  us  and  you  buy  as  you 
need  the  goods.  You  may  need  only  two  suits  in  each  sise  of 
children's  clo  hing.  That  ought  to  be  enough,  if  you  can  dupli- 
cate any  size  or  pattern  in  two  days'  time  by  mail  order.  Why 
tie  up  capital  ia  needless  stock?  We  duplicate  goods  in  forty- 
eight  hours. " 


Thus  the  little  dealer's  strongest  competitor — the  city  bar- 
gain counter — forms  the  subject  for  a  valuable  suggestion  and 
an  approach  for  orders. 

The  reason  why  the  small  dealer  has  so  limited  a  variety 
of  goods  is  because  each  new  line  involves  a  considerable  outlay 
of  capital;  it  requires  additional  space,  and  the  trade  does  not 
warrant  a  large  stock.  The  salesman,  because  of  the  infre- 
quency  of  his  calls,  wants  the  dealer  io  lay  in  more  than  his 
immediate  needs  require. 

This  gave  a  western  shoe  manufacturer  his  cue  to  extend  his 
markets.  He  knew  that  many  of  the  four-corner  town  merchants 
could  not  afford  to  carry  a  line  of  shoes  because  the  manufacturer 
would  sell  nothing  less  than  case  lots.  A  line  of  shoes  that 
would  meet  the  demands  of  any  dealer,  no  matter  how  smalL 


HOW  TO  OUTLINE  SELLING  PLANS  FOR  DEALERS    31 

would  necessitate  too  heavy  an  outlay  of  money,  with  the 
whole-case  policy.  So  he  determined  to  sell  less  than  case 
lots. 

He  wrote  the.  small  dealers:  **You  .may  never  have 
sold  shoes.  Or,  if  you  have  sold  shoes,  you  probably  couldn't 
afford  to  carry  a  complete  line.  That's  the  reason  why  so 
many  general  merchants  don't  carry  shoes.  It  isn't  because 
shoes  don't  offer  them  a  good  profit,  for  there's  hardly 
a  line  of  goods  that  pays  better."  Then  his  letter  suggested 
the  scheme:  "I  will  sell  you  quarter  or  half  cases  at  whole- 
sale price — will  sell  you  one  or  two  pairs  just  as  cheap  as  if 
you  bought  a  full  case  of  one  size  and  style."^ 

With  the  enclosure  of  a  stock  list  on  which  the  styles 
and  sizes  best  adapted  to  the  merchant's  needs  were  in- 
dicated, this  lefter  from  the  manufacturer  pulled  big 
^les.  It  was  the  idea  of  selling  in  small  quantities  and  promis- 
ing quick  renewals  of  stock  that  persuaded  the  small  dealer  to 
put  in  shoes. 

The  letters  with  the  approach  and  arguments  of  lower 
price  are  always  effective  with  the  small  dealer.  But  the  argu- 
ment is  "low  price,"  not  "cheapness,"*  because  the  word  cheap- 
ness  usually   carries    the   impression   of   poor   quality. 

The  suggestions  that  aid  him  in  every-day  sales  of  goods, 
and  help  him  to  build  up  his  business  against  competition, 
prove  to  him  that  you  are  interested,  not  merely  in  getting 
your  goods  on  his  shelves,  but  that  you  are  awake  to  his  needs 
and  his  difficulties  and  that  you  aim  to  give  him  every  assist- 
ance possible. 

To  carry  this  idea  a  step  farther,  many  manufacturers 
send  out  periodic  bulletins  and  booklets,  devoted  to  business- 
getting  schemes  that  have  been  tried  and  proved  successful 
by  small-town  merchants  and  cross-road's  dealers.  The 
schemes  usually  involve  a  purchase  of  the  manufacturer's  par- 
ticular line  of  goods  by  mail.  But  the  impression  that  the 
dealer  is  getting  valuable  suggestions  free,  is  nevertheless  carried 
to  him  and  fosters  his  good  will. 

The  idea  of  service  is  a  strong  argument  on  the  little  dealer. 
He  wants  to-  buy  in  small  quantities,  to  fill  in  broken  lines, 
and,  mOTe  than  all,  to  get  rapid  delivery.  This  letter,  used 
to  drive  home  the  advantage  of  unusual  service  ia  the  mail- 
order sale,  was  most  effective;    *'We  guarantee  seventy-two- 


32       QUICK  DELIVERIES  AS  A  SELLING  ARGUMENT 

hour  deliveries  to  customers  within  a  radius  of  one  hundred 
miles.  This  is  a  hard  and  fast  poHcy  of  ours.  It  practically 
makes  our  great  stock  room  an  addilion  to  your  store,  since 
you  can  fill  in  broken  lines,  duplicate  goods,  and  supply  your 
customer's  orders  on  new  lines  wilhia  three  days." 


24  SUIT  TRIAL  ORDER,  FORM  A 

CONSISTS  OF  4  MEN'S  SUITS  EACH.  TO  RETAIL  AT  SIX  PRICES     i.12: 

SIO.OO,       $12.50,       SI  3.50,      $1 5.0O,     $16.50,      $18.00 

TOTAL  COSt'whOLESALE  $216  00;  SELLS  TOR  S342  00.  PROFIT  S126  00. 
SHIP   THE  ABOVJ  ASSORTMENT  OF      "BLAN  K    BR  AND"     CLOTH  I  NO  TO  APPLY 

'  SEASON  AND. WILL    RETURN'ANY,  ORALLON  RECEIPT  OF 

SHIPMENT.  THAT  IS  NOT  ENTIRELY    SATISFACTORY 


PRING     t, 
INTER    j 


24  SUIT  TRIAL  ORDER,  FORM 

CONSISTS  OF  4  MEN'S  SUITS  EACH,  TO  RETAIL  AT  SIX   PRICES.  VIZ: 

$12.50,      S13.50,      $15.00,     S16.50,      SI  8.00,      S20.60 


TOTAL  COST  WHOLESALE  $240l00:  SELLS  FOR  $302  00.   PROFIT  $142.00 

SHIP  THE  ABOVE   ASSORTMENT  OF     "BLAWK   BnAND"    CLOTH  1  NO  TO   APPLY 

SPRING     \  SEASON  AND. WILL   RETURN  ANY.  OR  ALL  ON  RECEIPT  OF 

WINTtH    ) 

SHIPMENT,  THAT  IS  NOT  ENTIRELY  SATISFACTORY 


(POST  OFFICE). 


.  SHIPPING   POINT. 


OEPT,  NO.  1 


One  manufacturer  puts  up  trial  orders,  selecting  goods  that  will  meel  the 

dejnf,rui  of  tlie  small  dealer.     It  is  certainly  easij  for  tlie  dealer  to  Jul  out 

whichever  form  lie  wants 


But  a  sale  clincher  must  be  put  on  the  ktter.  This  is  merely 
making  it  easy  for  the  recipient  to  answer  and  order.  A  return 
envelope  should  accompany  the  letter,  and  reference  made 
to  it  in  some  such  way  as  this:  "Just  slip  your  order  in  the 
enclosed  stamped  envelope  so  it  will  reach  the  proper  depart- 
ment head  and  insure  prompt  attention."  An  order  blank 
slip  with  specific  directions  for  ordering  should  be  enclosed, 
as  simplicity  and  convenience  are  vitally  important. 


SPECIAl.  "HURRY  UP"  LNDUCEMENTS  33 

Because  of  the  wide  experience  which  manufacturers  are 
assumed  to  have  regarding  the  amounts  and  grades  of  goods 
needed  by  the  small  dealer,  it  is  often  possible  to  suggest  a 
complete  line  of  goods  and  offer  the  dealer  a  selection  which 
will  be  best  suited  to  his  particular  demand. 

Often  the  dealer  is  slow  in  taking  up  the  proposition.  To 
provide  against  this,  the  manufacturer  offers  some  special  in- 
ducement for  a  hurry-up  order.  One  letter  states,  "If  you  at- 
tend to  this  order  promptly  it  will  reach  us  in  time  to  get  the 
special  discount  of  five  off,  during  the  month  of  July."  With 
another  is  enclosed  a  coupon,  across  the  face  of  which  is  written, 
"This  coupon  is  worth  $10.00  during  the  month  of  September," 
and  on  the  opposite  side  of  the  coupon  is  written,  "Return  this 
coupon,  which  is  given  only  to  a  selected  list  of  customers, 
with  your  order  for  fifteen  fall  suits,  and  it  will  be  worth 
ten  dollars  during  the  month  of  August."  Still  another 
S(jheme  used  to  induce  early  orders  is  to  offer  a  selling 
guarantee  with  the  goods  in  case  the  order  reaches  the 
house  before  a  certain  date.  A  small  coupon,  on  which 
is  written  a  guarantee  to  take  back  all  unsold  goods  at 
the  end  of  a  certain  period,  if  they  are  ordered  before  the  date 
specified,  is  enclosed  with  the  letter.  This  scheme  gets  quickei 
results  with  .orders.  Besides,  the  guarantee  adds  confidence 
in  the  mind  of  the  dealer. 

One  order  does  not  make  a  regular  customer.  You  must  not 
expect  to  hold  the  continuous  trade  of  a  dealer  without  persist- 
ently following  him  up  wi\h  letters  to  impress  him  with  your  in- 
terest and  your  desire  to  aid  him.  The  service  given  is  an  im- 
portant factor  in  holding  his  good  will.  When  you  promise  de- 
liveries, make  the  promise  good  or  else  make  a  satisfactory  ex- 
planation. Here,  also,  the  periodic  bulletins  and  booklets 
of  selling  suggestions  aid  in  holding  interest.  A  system 
of  special  notifications  of  bargains  offered  shows  him  that 
you  are  watching  out  for  his  interests  and  impresses  him  with 
the  accessibility  of  your  house.  It  is  the  persistent  following 
up  of  these  little  details,  each  minor  in  itself,  that  rounds  out 
the  complete  idea  of  satisfactory  dealing  by  mail  with  the 
little  country  merchant — tliat  insures  his  continuous  trade — 
and  that  gives  the  side-issue-mail-order  department  an  appre- 
ciable value  to  the  regular  selling  end  of  a  business. 


Opening  New  Selling  Fields 

by  Mail 

PART  XII     HOW  TO  OPEN   NEW  TERRITORY  BV  LETTER     CHAPTKR  5j' 

IF  TRADE  were  limited  to  the  customers  who 
came  into  'personal  touch  iviih  the  salesmen,  buy- 
ing aJid  selling  ivould  be  limited  to  the  corner 
store  and  local  factories.  But  the  mails  have  en- 
abled the  buyer  to  seek  wider  markets,  overcoming 
the  handicaps  of  distance.  To  find  such  buyers 
is  the  aim  of  every  house  that  can  extend  its  field 
of  operations  by  selling  goods  by  letter.  Here 
are  some  ivays  by  which  it  has  been  done 

MARKETING  a  product  hitherto  entirely  unknown, 
or  expanding  a  business  to  a  new  field  of  trade,  is 
a  big  undertaking.  Every  producer,  whether  he 
is  the  bead  of  a  small  business  with  a  limited  capital,  or  of  a 
great  corporation  with  a  hundred-thousand-dollar  selling  ap- 
propriation, must  evolve  some  effective  method  for  extending 
his  markets.  He  must  follovv'  the  road  of  least  resistance  and 
cultivate  inexpensive  systems,  for  his  profits  will  de- 
pend, not  so  much  upon  the  cost  of  production,  as  upon  the 
marketing  of  his  goods  at  the  least  possible  expense. 

There  arc  several  ways  of  marketing  goods  in  a  new  terri- 
tory— usually  expensive  and  slow  in  producing  results.  Or,  de- 
mand may  be  created  in  time  through  high-priced  advertising, 
or  salesmen  may  be  sent  into  the  field  to  "work  up  business" — 
another  slow  and  expensive  method. 

The  simple  and  economical  scheme  is  to  use  letters  as  the 
selling  medium.  They  creep  in  silently  behind  the  competitor 
and  insert  the  wedge  that  opens  an  entry  for  the  new  product. 


THE  ATTITUDE  OF  THE  DEALER 


35 


They  impress  the  consumer  with  arguments  on  quah'ty  and 
merit;  they  educate  him  to  prefer  this  article  for  some  good 
reason  and  thus  create  a  demand.  They  get  customers  and 
build  up  trade.  Usually  the  manufacturer  does  not  care 
to  sell  direct  to  the  consumer — he  is  a  producer  and  v/ants  to 
avoid  the  details  of  retailing — and  with  a  following  of  customers 
to  oflFer  with  his  goods  to  the  dealer,  he  commands  atiention. 

In  starting  a  campaign  to  educate  the  consumers  in  a  new 
territory  three  things  are  necessary:    to  determine  the  extent 


The  four  methods  of  opening  up  new  territory  by  letter 


of  the  campaign;  to  secure  lists  and  classify  prospects,  and 
to  determine  the  arguments  to  be  used. 

The  extent  of  the  campaign  depends  in  each  case  on  the 
nature  of  the  proposition  and  the  pressure  necessary  to  interest 
the  dealer.  The  various  sources  of  names  are  taken  up  in 
other  chapters  as  well  as  the  method  of  testing  lists  and  trying 
out  letters  and  schemes, 

The  arguments  to  be  used  will  depend  upon  the  people  to 
whom  one  is  appealing.  If  lists  can  be  divided  into  classes, 
it  is  then  possible  to  shape  the  arguments  to  appeal  most  strongly 
to  each  group.    To  one  class  quality  may  be  the  best  talking 


86  IiIBTHODS  OF  CREATING  A  DEMAND 

point;  to  another  class  economy  is  the  iireaistible  argument, 
while  to  others  the  convenience  of  the  device  or  the  styb  of  the 
goods  may  aroiise  their  interest. 

The  whole  object  of  the  letter  is  to  convince  a  man  he  should 
try  your  goods;  the  battery  of  arguments  should  be  trained  to 
bring  down  the  trial  order.  Convince  a  man  that  your  product 
for  some  good  reason  is  peculiarly  adapted  to  his  wants  and  in 
presenting  your  appeal  you  must  be  quick  on  the  trigger — 
wing  his  attention  in  mid-air. 

But  the  letter  must  not  merely  arouse  curiosity  or  attract 
momentary  interest  by  some  clever  scheme.  It  must  be  edu- 
cational, for  while  the  attention  must  be  caught  quickly  and 
the  trial  order  secured,  the  plan  must  be  much  more  far-reaching 
— ^it  must  educate  the  consumer  to  want  your  product. 

Possibly  quality  is  the  one  argument  that  will  make  the  great- 
est appeal;  your  goods  may  have  some  unusual  merit,  some 
superior  value.  So  you  play  up  the  quality  of  material.  Or, 
you  may  want  to  emphasize  some  advantage  in  construction;  or 
price  may  be  your  big  inducement. 

The  strongest  appeal  is  usually  made  through  some  original 
selling  plan;   or  through  some  new  feature,  or  make-up  of  the 
goods — some  distinguishing  idea  that  the  other  man  has  not 
used.    Try   to  find  an  angle  strikingly    out  of   the  ordinary 
for"  originality  is  the  lever  for  prying  loose  a  prospect's  interest. 

A  shoe  manufacturer  found  a  new  angle  in  approaching 
the  consumer: 


1  pay  twenty-eicut  cents  a  foot  for  the  first  grade  of 
calf  skin  leather  used  in  our  Blue  shoes.   I  could  buy  the 
second  grade  at.  twepty-flva  cents  a  foot;  only  an  expert  can  telX 
the  difference   At  three  feet  of  leather  to  a  pair.  I  oould 
eave  nine  cents  here--a  good  many  do.  If  I  did  this,  my  ehoea 
would  be  like  all  othere--but  I  don't   I  know  I  oould  tako 
about  twenty-five  cents  out  of  every  pair  of  shoes  by  uslrg  In- 
ferior material,  but  I  aim  at  quality.  1  want  every  shoe  that 
leaves  our  factory  to  have  absolutely  the  best  wearing  aualltles. 


Ordinary  sTioe  advertisements  do  not  leave  much  of  an  impress, 
but  this  grips  my  attention.  It  is  a  new  angle  on  the  problem 
of  the  manufacturer;  I  see  a  good  reason  for  not  buying  cheap 
shoea;  I  am  convinced  this  manufacturer's  shoes  are  well  made. 


THE  TRIAL  ORDER  INDUCEMENT  87 

But  it  13  not  enough  that  arguments  should  be  carefully 
aimed  after  the  range  is  found;  they  should  be  backed  up  with 
a  strong  guarantee  that  will  inspire  confidence. 

In  selling  staples,  the  actual  diflference  in  the  goods  advertised 
is  hard  to  explain;  it  is  difficult  to  differentiate  one  brand  from 
other  similar  lines  and  so  the  guarantee  of  satisfaction  and 
the  low  cost  should  be  played  up. 

The  whole  aim  is  to  get  the  trial  order.  That  is  the  first 
hook.  It  will  hold  the  prospect  until  he  can  be  landed  as  a 
regular  customer.  For  the  manufacturer  or  wholesaler  cares 
little  for  a  single  sale;  he  worlds  hard  to  make  this  sale 
simply  because  it  will  lead  to  others.  What  he  wants  is  an 
established  clientele  to  offer  the  retailer  and  so  he  ham- 
mers away  with  the  "money-back-if-not-satisfactory"  proposition. 

"If  it  isn't  more  delicately  fragrant  than,  any  cigarette  you 
have  ever  smoked,  we  ask  the  privilege  of  returning  the  money 
you  paid  for  the  package."  This  is  evidence  that  the  cigarette 
is  a  good  one.  No  smoker  would  hesitate  about  sending  for  a 
trial  package. 

Give  the  customer  a  hard  and  fast  guarantee.  Here  is  the 
wording  on  a  card  by  which  a  clothing  house  won  confidence 


"Tlilo  -suit  of  clothes  19  guaranteed  to  be  one  hundred 
per  cont  wool;  it  Xa   made  '07  Al  tailors;  It  la  given  one  hundred 
per  cent  ehrinkage  and  will  eive  absolute  wearing  satisfaction. 
If  a  slnele  cotton  thread  can  ba  found  in  the  cloth  or  if  cheap 
leljor  l3  found  to  have  been  used  In  its  manufacture,  or  if  the 
buyer  is  in  any  way  diosatlefied  after  purchasing  the  return  of 
this  card  attached  to  the  suit  will  bring  a  refund  of  the  money 
paid. 

Such  guarantees  give  the  consumer  confidence,  but  even 
that  is  not  enough — you  want  his  order  To  provide  against 
his  holding  off  or  delaying,  give  some  little  "hurry-up"  twist 
to  the  letter.  "This  is  a  ten-day  offer,"  or  "You  must  get  the 
goods  now"  Another  plan  is  to  apply  the  limited  number  idea; 
thus,  "We  are  making  this  offer  to  only  the  first  hundred  per- 
sons who  purchase.  You  want  to  be  one  of  that  first  hundred. 
Send  in  the  enclosed  order  blank  today."  The  time  limit 
usually  proves  effective. 

If  the  consumer  fails  to  order,  a  follow-up  letter  is  mailed — 
provided  the  proposition  warrants  it  Usually  a  series  is  necessary 


88  THE  VALUE  OF  SPECIFIC  SELLING-TALK 

before  there  are  ecough  regular  customers  to  make  a  leverage 
on  the  dealer.  The  length  of  the  follow-up  will  depend 
upon  the  value  of  the  article  sold,  upon  the  allowance  set  aside 
for  the  campaign,  and   the  difficulty  of  exploiting  the  product. 

A  manufacturer  of  an  article  used  by  women  in  their  home 
work  found  that  it  would  be  impossible  to  get  his  goods  on  the 
retailer's  shelves  by  ordinary  methods  without  an  enormous 
expenditure.  A  virtual  combine,  controlled  by  merchants, 
shut  him  out  from  the  field. 

He   at   once   began    circularizing   the   consumers: 


"Your  dealers  are  looking  for  the  1)122681  profits  on 
their  sales  .without  attempting  to  give  you  value  received  for 
your  good  money-  They  know  that  to  sell  at  so  low  a  price  I  must 
reduce  their  selling  comnissiona.  hecatise'  to  give  you  the  same 
Quality  at  a  lover  prioe  must  mean  a  reduction  la  selling  cost. 
It  isn't  because  of  quality  that  they  refuse  to  supply  you  with 
my  goods--that  they  pala  off  other  goods  less  meritorious,  at 
blgher  prices.  It  is  because  tbev  want  a  bigger  profit." 


The  first  letter  was  followed  ten  days  later  by  a  second, 
further  emphasizing  quality: 


"Here  Is  a  sample  of  the  quality  of  oy  eoods.  Just  lay 
It  side  by  side  with  the  goods  you  are  paying  one-third  more  for 
at  your  dealers*  store.  You'll  find  It  is  not  only  JUST  AS  COOS 
but  It  is  finer  weave--a  better  coabed  fibre.   It  will  wear 
double  the  time  of  the  goods  you  have  beea  using.  If  It  doesn't 
Just  £end  It  back — even  If  you  have  used  and  soiled  it.  I'll 
refund  your  noney  willingly  " 


He  was  successful  from  the  first,  because  he  found  a 
new  argument  and  his  marksmanship  was  accurate.  His 
goods  soon  became  known  as  the  most  popular  priced  in  the 
field.  When  he  could  show  long  lists  of  customers,  the  time 
was  ripe  to  leave  the  details  of  retailing  and  to  confine  himself 
to  producing.  "I  am  going  to  appoint  a  dealer  in  your  lo- 
cality," he  wrote  the  best  retailer.^,  and  they  bid  for  the 
agency.  Not  only  were  they  ready  to  handle  his  line,  they 
-even  guaranteed  minituutn  sales. 


DELIVERING  CUSTOMERS  TO  DEALERS  39 

The  manufacturer  of  a  high  grad?  linen  wrote  the  "women 
of  the  country  within  easy  shopping  distance  from  each  dealer's 
store: 


'Sinoe  the  price  of  linens  has  gone  up,  many  manufac- 
turers have  cheapened  their  goods  by  using  a  lower  grade  thread. 
They  know  you  can't  see  this — and  you  can't.  But  you  will 
notice  the  difference  in  the  line  of  the  goods.  They  won't 
stand  the  wear.  Our  goods  have  never  changed;  we  guarantee  the 
Quality  and  wear.  Tor  one  nonth  we  shall  sell  at  this  reduced 
price  to  enahle  you  to  try  out  our  eood3--to  see  the  long  life  of 
HOraST  ISADE  LINEN.   If  it  doecn't  suit  you  or  if  you  are  dissat- 
isfied in  any  particular,  you  may  send  baok  the  goods  to  U3--at 
OUR  EXPENSE,  and  we  will  refund  your  money." 


Orders  came  slowly  at  first,  but  otlier  equally  forceful  letters 
followed  at  intervals  of  ten  days  and  got  the  desired  customers. 
Then  the  manufacturer  went  to   the  dealers: 


"I  can  give  you  sixty  new  customers.   I'll  send  them  *o 
your  store  if  you  will  handle  our  goods." 


The  dealers  came  with  a  rush.  The  customers'  names  were 
turned  over  to  them  and  the  consum^jrs  were  asked  to  patroniza 
the  local  dealers. 

The  entermg  wedge  to  the  dealer's  business  is  "profits 
customers  and  sales,"  offered  with  the  bill  of  goods.  Get  a 
list  of  customers,  and  oflher  them  to  the  dealer. 

Tell  him  that  a  dealer  is  to  be  appointed  in  his  locality  and 
that  you  intend  to  turn  over  to  him  an  established  trade — cus- 
tomers'who  have  learned  the  merit  of  your  product  and  will  in- 
sist upon  having  it.  If  you  can  offer  him  the  exclusive  selling 
rights  for  his  territory  and  an  established  trade,  he  will  jump 
for  the  business. 

If  there  is  an  established  tyade  that  can  be  turned  over 
to  the  dealer  he  will  frequently  do  more  than  consent  to  handle 
your  goods;  very  likely  he  m.ay  be  induced  to  sign  a  contract 
for  a  certain  amount  during  tKe  year.  In  fact,  if  a  manufac- 
turer has  boilt  up  a  trade  that  he  is  williug  to  turn  over  to  a 
merchant,  it  is  no  more  than  reasonable  to  ask  that  merchant 


40  TIIE  SPUR  OF  COMPETITION 

to  agree  to  buy  a  definite  amount  of  goods   during   the  year, 
thus  assuring  his  active  interest  in  pushing  their  sale. 

One  firm  writes  to  prospective  dealers  at  this  stage  of  the 
negotiations: 


"Since  we  are  giving  you  an  r^saured  business — certain 
profits,  customers  who  will  come  to  your  store,  while  all  you 
have  to  do  is  to  hand  them  out  our  goods  and  collect  your  pro- 
fit3--it  is  only  fair  that  you  guarantee  to  treat  these  cus- 
tomers wall.  We  want  to  make  euro  that  when  they  come  hack  again 
and  again  for  our  goods  they  will  not  he  disappointed;  we  want 
to  make  aure  that  you  will  keep  these  goods  on  your  shelveo." 


With  this  argument  ai?d  the  leverage  of  certain  customers 
to  whom  the  dealer  may  sell  other  goods,  he  is  persuaded  to 
sign  a  contract  for  a  specified  quantity  to  be  used  during 
the  year — and  having  agreed  to  buy  them,  he  is  certaia  to  push 
their  sale. 

If  he  falls  down  or  loses  interest,  the  manufacturer  can  go 
out  on  a  ^till  hunt  and  work  up  more  trade,  and  then  go  to 
the  dealer  and  say,  "Look  here  what  we  have  picked  up — 
business  that  you  ought  to  get,  for  it  is  right  at  your  door.  Go 
after  it  hard,  or  we  will  have  to  place  our  line  v/ith  some  other 
dealer  who  appreciates  this  field." 

No  merchant  cares  to  contemplate  having  a  line  taken  away 
from  him  and  given  to  a  more  progressive  competitor — and  have 
this  competitor  make  capital  out  of  the  change^  It  spurs  him 
to  greater  activity. 

The  manufacturer  or  the  wholesaler  who  can  appeal  directly 
to  the  consumer  and  develop  a  retail  trade  by  mail  possesses 
a  leverage  that  will  force  open  the  doors  of  the  most  conserva- 
tive merchants;  induce  them  to  bid  for  the  business  and  then 
keep  a  pressure  behind  them  that  assures  their  continued 
activity  in  pushing  the  goods. 

Get  the  consumers;  establish  a  clientele  and  your  problem 
of  opening  new  territory  through  the  retailers  is  solved. 


How    Manufacturers    Drum 
Up  Trade  For  The  DEALER 

PART  XII    HOW  TO  OPEN  NEW  TERRITORY  DY  LETTER    CHAPTER  53 

THE  DEALER  does  not  care  for  merchan- 
dise on  his  shelves,  he  wants  trade.  The  big- 
ger the  demand  for  his  goods,  the  greater  are  his 
profits — and  proportionally  greater  are  his  pur- 
chases from  the  manufacturer.  Hence  it  is  to 
the  manufacturer's  interest,  not  only  to  sell  his 
PRODUCTS  to  the  dealer,  but  to  deliver  the  DE- 
MAND FOR  THOSE  PRODUCTS  as  well. 
This  chapter  explains  hoio  some  manufacturers 
created  a  market  for  their  goods  as  a  lever  in 
getting  the  dealer's  order 

THE  letter  campaign  which  aims  at  developing  a  new 
territory  or  marketing  an  unknown  product,  may  be 
directed  at  the  dealer  and  the  consumer  simultaneously. 

Instead  of  building  up  a  clientele  of  mail-order  cus- 
tomers, the  manufacturer  may  induce  the  dealer  to 
supply  the  demand  immediately.  The  detai's  of  con- 
ducting a'  retail  business  are  avoided,  and  the  co- 
operation of  the  dealer  i§  secured  in  turning  the  trial 
order  into  established  trade. 

Old  selling  arguments,  price  and  quality — unless  extraor- 
dinary— fail  to  get  under  the  skin  of  the  dealer  when  applied 
to  a  new  and  untried  article.  Why  should  he  add  a 
new  line  and  go  out  to  drum  up  interest  in  it?  Why  should 
he?  What's  the  inducement?  He  must  be  offered  more 
than  mere  merchandise.  His  interests  are  along  the  lines  of 
sales,  profits,  customers,  service.    He  cares  nothing  for  the 


42         THE  DOUBLE-BARRELED  LETTER  CMIPAIGN 

goods — ^anyone  can  fill  up  a  store  with  goods.  What  he  wants  is 
a  demand — trade.    Give  him  a  demand  along  with  the  goods. 

It  is  a  distinguishing  feature  of  an  article  that  appeals  to 
the  consumer,  while  the  selling  power  of  this  feature  gets  the 
dealer's  interest. 

First,  in  this  double-barreled  campaign,  play  upon  the  fact, 
in  your  letter  to  the  dealer,  that  you  have  a  feature  with  which  to 
secure  the  consumer's  interest  and  get  his  business.  Hammer 
on  your  elaborate  plans  for  circularizing  the  consumer  in  your 
opening  campaign — and  you  will  have  him  taking  notice. 
Besiege  the  dealer  with  arguments  on  profits,  sales,  new  busi- 
ness that  the  campaign  will  create. 

The  success  of  this  method  depends  largely  upon  the  skill 
shown  in  handling  the  arguments.  You  must  make  your  new 
feature  or  your  better  quality  create  a  desire  and  then  use  the 
other  end  of  the  club  on  the  dealer — make  him  put  in  jour 
products  to  supply  the  demand. 

The  clothing  liianufacturer  writes  to  the  consumer. 


"Just  take  thia  coupon  to  ISr.  Brown's  etore  and  tell 
him  you  want  to  try  en  a  suit  that's  made  RIC-HT--tell  him  you 
trant  only  the  clothes  sold  under  our  guarantee  and  show  hias  tho 
coupon  with  its  signed  guarantee   He  will  give  you  a  try-on. 
You  are  not  in  anyway  o'bligated--you  don't  need  to  buy.  Just  go 
in  today  and  look  ova:-  the  styles  " 


To  the  dealer  he  writes: 


"Take  care  of  your  customers  and  they'll  taJce  care  of 
you.  There's  no  profit  in  selling  a  man  his  first  suit  if  that 
one  sale  turns  out  to  he  your  last  to  him. 

"The  first  order  means  established  trade — and  we  ara 
BOing  to  get  those  first  orders.  $100,000  is  being  spent  thie 
opring  in  advertising  our  Uadeweli  garments.  Hot  only  in  general 
publicity  but  letters,  personal  letters,  will  be  sent  out  to  ths 
desirable  prospects.  These  letters  will  reach  not  only  your 
customers  but  many  men  who  have  never  been  in  your  store.  You 
g£.t  this  advertising  free  and  you  get  their  trade  by  putting  in 
enough  of  a  stock  so  these  oustomers  will  not  be  disappointed 
when  they  call  on  you.  We  will  do  the  rest;  we  will  get  them 
into  your  store;  we  will  furnish  goods  that  will  almost  sell 
themselves--it  is  up  to  you  to  show  the  Madewell  garments  and 
•profit  by  this  new  business.  •' 


THE  SOMETHING-FOR-NOTHING  ARGUMENT        43 

Style,  fit,  wearing  qualities — these  are  the  arguments  you 
use  on  the  consumer;  free  advertising,  new  business,  satisfied 
customers,  more  profits — these  are  the  arguments  that  land  the 
dealer.  Once  his  order  is  placed,  his  money  invested 
in  the  goods,  it  is  easy  to  get  him  to  cooperate  in  push- 
ing them. 

A  shoe  manufacturer  entering  the  field  found  it  hard  to 
break  into  the  retail  stores  with  the  hand-me-down  arguments 
of  price  and  quahty,  so  he  began  to  look  for  the  weak  point  in 
the  manufacture  of  shoes.  He  decided  it  was  the  fit,  and  so  he 
loaded  his  letters  with  the  one  argument — fit.  The  letter  to 
the  consumer  called  attention  to  the  fact  that  this  shoe  was 
made  in  quarter  sizes,  which  mean  absolute  shoe  comforL 

"In3tead  of  having  to  wear  your  shoes  six  months  ■befor«» 
they  are  soft  and  plia'blo  to  your  feet.  Simply  stick  your  feet 
into  the  shoes. 

"1  know  you  are  Incredulous.  I  know  you  will  not  tako 
my  statements  for  any  more  than  you  have  t&ken  others;  hut  I  am 
willing  to  pay  you  to  investigate.   In  order  to  show  you  that 
everything  I  claim  is  hased  on  absolute  fact,  I  am  making  you 
this  offer:  within  the  next  ten  days  you  will  take  this  letter 
to  your  local  dealer  and  with  each  pair  of  shoes  you  try  on  and 
wear  across  the  room,  he  will  give  you  one  of  our  celehrated 
merserized  shoe  poll3hers--something  ahsolutely  new — simply  rul) 
it  on  the  shoe  two  or  three  times  and  you  will  have  a  polish  as 
good  as  a  hoothlack  could  give  you  in  an  hour's  lahor.   I  am 
willing  to  do  this  In  order  to  get  you  to  try  on  the  shoe.* 

Here  an  inducement  was  offered  that  was  sure  to  bring  the 
recipient  into  the  store,  for  the  "something-for-nothing"  propo- 
sition touches  a  vulnerable  spot  in  human  nature. 

An  ^vance  copy  of  this  letter  was  sent  to  all  the  shoe  mer- 
ebants  in  a  town.  Each  dealer  was  asked  frankly  if  he  could 
afford  to  turn  down  these  customers;  if  he  was  going  to  stand 
idly  by  while  thousands  of  customers  marched  into  his  com- 
petitor's store. 

"In  fifteen  days  I'll  have  all  the  shoe  users — every 
buyer  in  town--flooded  with  letters  similar  to  these  enclosed. 
I'm  going  to  galvanize  your  town  with  these  letters.   I'm  going 
to  send  lots  of  buyers  to  s6me  stores--!  don't  know  yours  will 
be  among  them  but  I  hope  so. " 


44  GUARANTEEING  DISPOSITION  OF  STOCK 

To  put  on  the  final  clincher,  the  manufacturer  adds  that  it 
Is  a  thirty-day  offer,  and  he  further,  agrees  to  take  back  all 
unsold  shoes  at  the  end  of  sixty  days. 

It  is  an  irresistible  offer.  He  cannot  turn  it  down.  Like 
the  consumer,  he  is  told  that  the  manufacturer  knows  that  he  is 
incredulous,  that  he  has  heard  all  these  things  before,  but 
that  the  things  now  claimed  are  to  be  lived  up  to.  He  is  offered 
an  opportunity  to  try  out  the  proposition  at  a  small  investment. 
Thus  the  dealer  trade  is  established.  The  new  territory  is 
opened  up. 

The  consumers'  side  of  the  campaign  may  be  carried  one 
step  further,  in  order  to  give  more  weight  to  the  club  used  on 
the  dealer.  If  you  offer  to  send  buyers  to  the  store  of  the  dealer, 
instead  of  mere  prospects,  he  will  come  on  his  knees  to  you. 

A  scheme  of  this  kind  was  nsed  by  the  manufacturer  of 
embroidery  silk  in  a  territory  where  his  previous  attempts  to 
establish  trade  had  met  failure. 

He  began  a  sales  letter  campaign  direct'  on  the  women 
consumers.  "With  a  certain  amount  of  silk,"  the  letter 
promised,  "a  stamped  piece  ready  for  embroidery  would  be 
given  away  free,"  and  thousands  of  women  were  attracted  by 
the  offer. 

The  purpose  of  the  campaign,  however,  was  not  to  create 
a  mail-order  business,  and  purposely  the  stamped  piece  given 
away  required  twice  as  much  silk  as  the  order  accompanying 
it.    This  insured  a  second  purchase  from  each  woman. 

The  manufacturer  shaped  his  campaign  so  that  a  dealer 
in  each  town  should  fill  this  second  order.  As  rapidly  as 
possible  the  names  of  the  first  purchasers  were  classified  by 
towns.  As  soon  as  an  impressive  list  had  been  collected  the 
leading  dry  goods  house  was  assured  that  twenty,  or  forty,  or 
one  hundred  women  wanted  the  company's  silks — were  ac- 
tually waiting  to  buy  them. 

A  successful  milling  company  adopted  the  "double-bar- 
reled-letter-campaign-on-consumer-and-dealer"  plan  to  market 
a  new  flour.  It  was  the  best  grade  of  flour  it  had  ever  put  out 
— the  very  best  it  could  make,  and  the  natural  course  was  to 
make  superiority  the  distinguishing  feature.  But  any  num- 
ber of  concerns  were  playing  up  quality — and  shouting 
just  as  loud — so  it  was  not  likely  attention  could  be  attracted 
in  that  way. 


THE  "FREE  SAIMTLE"  COUPON 45 

The  guarantee  was  adopted  both  on  the  consumer  and 
on  the  dealer.  Tested  arguments  were  used  in  letters  to  the 
women  of  the  better  class: 


"We  want  to  reach  women  who  are  looking  for  a  truly 
superior  flour--a  flour  that  will  give  the  most  complete  satis- 
faction, the  best  and  most  economical  results  that  are  possible. 
M?8  have  such  a  brand  of  flour   It  is  TAR  SUPERIOR  to  other 
■brands  and  we  want  to  prove  It  to  you.  So  we  make  this  unusual 
offer.  You  try  our  flour  AT  OUR  risk — not  at  yours  " 


A  couple  of  paragraphs  were  devoted  to  "reasons  why" 
the  flour  is  superior  and  then  the  inducement  was  made: 


"Try  a  sack  of  our  flour,  making  as  many  bakings  as 
you  wish.   If  you  are  not  then  satisfied  that  it  is  the  best 
flour  that  you  can  buy.  your  money  will  be  returned  without 
argument   All  we  ask  is  that  you  hand  this  coupon  to  your 
grocer   If  your  grocer  does  not  sell  our  flour  ho  can  easily 
get  It  for  you.   If  he  won't,  put  a  stamp  on  this  coupon  where 
our  address  is  given,  sign  your  name  with  the  name  of  your  grocer 
In  the  space  and  drop  It  in  the  mail  box.  Wa  will  see  that  he 
supplies  you.  Do  it  today  before  you  forget  it  " 


1  coupon  was  enclosed — a  coupon  always  possesses  more 
value  than  a  plain  letter  or  a  free-for-all  offer — and  plainly  stated 
that  the  lady  was  to  be  the  sole  judge  of  the  merit  of  the  flour 
and  that  a  partly  used  sack  could  be  returned  for  a  refund  of 
the  money. 

To  the  dealers  the  manufacturers  wrote: 


"We  are  writing  YOUR  customers  as  well  as  every  flour 
user  in  your  locality.   We  are  flooding  your  customers  as  well 
as  your  competitor's  trade  with  reasons  why  they  should  use  this 
flour  in  preference  to  any  other.  Here  is  your  chance  to  get  an 
advantage  over  your  competitors.   We  will  send  hundreds  of  their 
customers  to  your  store  inquiring  for  ovr  flour.   They  won't 
take  any  other  because  we  have  offered  them  an  unusual  money- 
back-lf-not-satisfactory-after-using-guarantee.  No  other  con- 
cerns have  offered  them  this.  Get  their  business  when  it  comes. 
Don't~Io3e~l;he  profit  by  letting  them  go  elsewhere.  Get  a  trial 
ehipment  now  and  supply  thi-a  demand.  Pill  out  the  enclosed  trial 
order  blank  and  mail  to  us  today." 


46  THE  RiVPID  FIRE  FOLLOW-UP 

These  arguments  were  applied  in  a  series  of  ten  letters. 
The  consumers  got  a  letter  every  ten  days;  the  dealers  at  the  same 
time.  Orders  came  in  by  the  hundred  because  the  consumers 
kept  asking  the  dealers  to  get  them  a  trial  sack.  Dealers  ■were 
forced  to  comply  with  the  conditions  made  by  the  manufacturers, 
because  they  wanted  the  profits  of  the  sales.  The  consumer 
guarantees  brought  back  only  here  and  there  a  request  for 
refunded  money,  because  the  flour,  once  given  a  fair  trial, 
showed  its  merit.  When  the-  plan  was  running  smoothly,  the 
managers  decided  to  balance  their  books  to  determine  how 
near  their  estimates  had  hit  the  actual  expenses  of  the  cam- 
paign.   There  was  hardly  a  shade  of  difference. 

This  is  the  most  familiar  method  of  entering  new  territory — 
a  campaign  that  centers  on  both  the  consumer  and  the 
dealer.  The  advantage  is  that  it  may  be  used  successfully  ia 
any  line  of  business — dry  goods,  clothing,  groceries,  drugs, 
novelties,  specialties — they  are  all  successfully  marketed  in  this 
way.  It  is  effective  been  use  of  the  double  pressure  that  may 
be  exerted;  the  manufacturer  and  the  consumer  are  both  urging 
the  dealCT  to  handle  the  article;  the  manufacturer  and  the 
dealer  are  both  urging  the  consumer  to  use  it. 

There  is  hardly  a  business  that  does  not  have  to  fight  for 
an  opening.  Every  manufacturer,  importer,  jobber  and  whole- 
saler has  to  work  to  have  the  retailers  handle  his  particular 
line  of  goods.  The  merchant  is  besieged  on  ail  sides  by 
salesmen  and  by  propositions  that  are  tempting~but  his  capital, 
his  space  and  the  character  of  his  trade  necessitate  his  selecting 
his  lines  carefully.  It  is  so  easy  to  buy  goods;  it  is  so  hard  to 
establish  a  trade  tl^at  the  manufacturer  who  will  create  that 
demand  for  him,  give  him  free  advertising  and  lure  cus- 
tomers into  his  store,  is  surest  of  his  trade.  The  campaigu 
on  consumer  and  dealer  lands  the  business  when  either  cam- 
paign alone  would  fail. 


How  to  Interest  New  Dealers 

by  Correspondence 

PART  Xll     HOW  TO  OPEN  NEW  TERRITORY  BY  LETTER    CHAPTER  54 

DEALERS  handle  a  manufacturer  s  froducts 
because  of  the  inducements  of  PftiCE,  Exclusive 
Territory,  special  Selling  Plans  or  similar 
specific  advantages  that  the  manufacturer  can 
ofer.  To  the  extent  that  such  selling  propositions 
can  he  put  up  to  the  dealer  by  maiU  to  that  extent 
is  the  manufacturer's  selling  f. eld  eiilarged.  In 
this  chapter  are  illustrated  some  of  the  methods 
by  which  manufacturers  have  opened  up  new  ter- 
ritory by  means  of  letters  to  dealers — letters  that 
offer  attractive  inducements  in  attractive  form 

THE  problem  of  the  manufacturer  is  to  get  the  dealer 
to  handle  his  product.  One  manufacturer  may  reach 
this  end  most  readily  by  taking  the  circuitous  route  of 
working  up  a  clientele  and  using  it  as  a  bait  to  get  the  retailer, 
another  may  make  a  flank  attack,  getting  customers  to  bring 
pressure  in  the  rear  while  he  brings  pressure  in  front.  A  third 
manufacturer  may  not  be  able  to  use  either  method  effectively; 
he  may  find  it  better  to  go  direct  to  the  dealer  and  make  induce- 
ments that  will  get  his  orders. 

While  quality  and  price  do  service  here,  as  in  every  selling 
campaign,  every  manufacturer  strives  to  get  his  product  in  a 
class  by  itself;  he  strives  for  some  distinctive  feature;  some 
actual  improvement;  some  good  talking  point.  He  realizes 
how  difficult  is  the  problem  of  introducing  any  product  that  is 
merely  "just  as  good  as"  old  familiar  brands.  It  must  be  better 
or  there  must  be  some  selling  advantage  if  the  live  dealers  are  to 
handle  his  product  in  addition  to  or  in  place  of  other  goods. 

47 


4S  EXCLUSIVE  SELLING  RIGHTS 

The  merchant  moves  in  the  course  of  least  resistance — 
and  that  is  to  carry  the  goods  he  has  previously  sold,  the 
goods  with  which  his  trade  is  familiar.  To  change  his  course, 
additional  profits  is  the  lure  tha.t  must  be  presented  in  some  form 
—more  customers,  more  sales,  a  bigger  business. 

One  of  the  familiar  schemes  is  to  oflfer  the  dealer  exclusive 
rights  in  his  tov>'n.  From  chewing  gum  to  automobiles,  the 
exclusive  selling  rights  have  a  povv'crful  appeal.  The  more 
widely  advertised  the  particular  machine  or  brand  or  trademark, 
the  more  ready  is  the  dealer  to  take  advantage  of  this  publicity. 

Here  is  the  v/ay  a  manufacturer  approaches  the  dealer 
with  an  exclusive  selling  representative  proposition: 


Sear  Sir: 

Vou  would  not  be  justified,  of  course,  in  selling  our 
eafety  razors  unleaa  you  could  make  la«rger  profits  than  you  are 
tion  making. 

But  if  you  were  convinced  that  you  could  make  from 
10^  to  20^  more  profit  than  you  are  makine  at  present,  you 
Wouldn't  hesitate  a  moment  about  taking  on  our  line,  would  you? 

Well  that's  exactly  what  you  can  do  with  our  safety 
razors. 

Remember,  when  you  buy  of  ua  the  transaction  doesn't 
end  with  our  sending  you  the  razors.  We  actually  eeli  the  razors 
for  you. 

First,  by  the  enormoua  magazine  advertlslne  which  we 
are  constantly  doing  and  which  will  cause  people  to  oome  to  your 
Store  and  ask  for  our  razors. 

Second,  by  use  of  printed  matter  bearing  your  came  and 
address  which  we  furnish  you  free  of  charge. 

Finally,  be;ar  In  mind  that  you  will  be  handling  goods 
With  a  reputation,  and  the  very  fact  that  you  represent  us  in 
your  locality  will  add  to  your  prestige,  and  this  means  dollars 
to  vou. 

If  you  place  an  order  for  two  dozen  safety  razors  wo 
will  give  you  the  exclusive  selling  rights  in  your  city.  The 
demand  will  bo  created;  it  is  certain  to  grow.  Are  you  going  to 
profit  by  this  businoos  or  is  your  competitor? 

Why  not  make  the  start  to-day--you'll  never  regret  It., 

Yours  for  greater  profits, 

SAHITO  SAFETY  RAZOR  CO. 


PLAYING  UP  NOVEL  TALKING  POINTS  i9 

Aside  from  improvements,  better  quality,  and  exclusive  scll- 
intr  rights,  there  is  the  opportunity  to  interest  the  dealer  in 
some  new  article,  such  as  a  firelcss  cooker,  or  the  vacuum 
cleaner.  Here  again  the  manufacturer  has  an  abundance  of 
material  for  talking  points,  as  progressive  dealers  are  always 
ready  to  take  advantage  of  a  growing  demand. 

Frequently  the  dealer  can  be  waked  up  to  some  new  oppor- 
tunity. You  may  be  able  to  point  out  to  him  the  way  to  de- 
velop some  additional  line  of  trade, 

A  manufacturer  of  automobile  accessories  opened  up  a 
good  territory  by  the  application  of  this  idea.  He  learned  that 
a  new  macadam  road,  then  under  process  of  construction, 
would  materially  lessen  the  distance  between  two  cities.  It 
would  inevitably  become  a  popular  route  for  automobiles. 
He  immediately  secured  the  names  of  hardware  dealers  in  the 
towns  along  the  route,  and  began  an  educational  campaign.  The 
significance  of  the  new  road  had  not  occurred  to  them.  He  wrote : 


"Your  new  macadam  route  Ijetween  B and  W will  te 

completed  early  in  the  summer.  Think  of  the  great  field  that 

will  he  opened  up  to  automohilista  hy  this  road.  B is  a  city 

cf  half  a  million,  with  over  ten  thousand  machines  used  solely 
for  pleasure  riding.  It  la  a  safe  estimate  that  half  the  auto- 
mohiles  owned  in  these  two  cities  will  use  your  road  every  month. 

"You  can  see  what  a  demand  for  automohile  accessories 
and  supplies  will  be  created.  You  are  naturally  in  a  position  to- 
supply  th.i.s  demand.  You  want  the  additional  husineas  and  the 
fine  profits  that  the  sales  of  automohilo  accessories  and  sup- 
plies offer.  You  can  easily  arrange  to  install  a  small  depart- 
ment in  your  husiness  place  for  such  stock. " 

And  then  the  letters  pointed  out  the  special  advantages  of 
the  particular  line  of  accessories  offered.  As  a  clincher  the 
manufacturer  wrote: 

/ 

"You  don't  want  to  wait  until  others  have  estahlished 
a  trade  with  the  automobilists.  You  want  to  be  Just  a  little 
ahead  of  the  other  fellow3--you  want  to  get  the  jump  on  them  and 
get  your  name  among  the  motorists  as  the  best  place  in  the  ter- 
ritory for  supplies.  Here  is  a  list  of  accessories  that  you  will 
need  at  first.  Check  off  the  amounts  of  each  article  you  want 
tand  mail  the  list  today.  We  will  send  complete  instructions  re- 
garding the  best  way  to  arrange  your  stock  and  handle  the  business.  " 


50        SHOWING  THE  DEALER  HIS  OPPORTUNITIES 

In  this  way  the  manufacturer  played  upon  the  prospect's 
appetite  for  more  profits  and  his  desire  for  business  that  might 
go  to  his  competitors.  Thus  he  opened  up  an  entirely 
new  territory  by  being  before-handed,  by  educating  the 
dealer  and  getting  the  order  before  the  other  manufacturers 
woke  up  to  the  situation. 

A  free  trial  or  an  order  placed  at  the  risk  of  the  manu- 
facturer appeals  to  the  dealer  no  less  than  to  the  consumer. 
The  manufacturer  of  chewing  gum  successfully  approached 
the  retailer  from  this  angle: 


"You  probably  have  been  selling  gum,  but  you  had  to  pay 
for  It  whether  you  could  dispose  of  it  or  not.  I'm  not  going  to 
ask  that  of  you.  I  merely  want  the  privelijge  of  displaying  my 
new  gum  on  your  counters,  that  you  may  see  how  readily  it  will 
sell.  Merely  sign  the  enclosed  card,  telling  me  to  send  you  a 
trial  order,  including  a  large  glass  display  case.  Put  the  gua 
in  the  case;  put  the  case  on  your  counter  and  watch  it  sell. 
Whsn  the  trial  order  is  gone  you  collect  your  profit  and  pay  ms 
for  the  gum.   I  will  give  you  the  glass  case." 


Then  the  manufacturer  added,  to  this  guarantee  of  selling 
profits,  a  hurry-up  clincher:  "This  is  a  ten-day  offer.  Order 
NOW  while  there  is  an  opportunity  to  try  out  this  gum  at  our 
risk." 

This  selling  feature  was  an  almost  irresistible  one.  This 
guarantee  of  profits  encouraged  trial  orders,  while  the  gift  of 
the  display  case  kept  the  goods  on  the  counters  within  easy 
reach  at  all  times,  and  the  gum  sold  itself.  Within  a  year 
that  chewing  gum  was  known  almost  universally.  No  other 
selling  medium  than  letters  was  used. 

The  prize-with-customer-sale  plan  is  another  effective 
approach.  It  was  used  effectively  by  a  large  western  soap, 
manufacturer.  He  wrote  the  dealers,  offering  to  give  their 
customers  handsome  prizes  for  various  amounts  of  soap  pur- 
chased; "Each  cake  of  soap  will  have  a  coupon,  and  for  every 
twenty,  forty,  or  a  hundred  coupons  turned  in,  you  are  author- 
ized to  give  a  valuable  present.  We  will  supply  the  presents. 
They  will  be  sent  to  you  with  the  trial  order  and  you  can 
display  them  in  your  store.  They  are  handsome  presents  and 
will  bring  intomany  new  customers    your  store. 


FEIEE  DEMONSTRATIONS  A  INIAGNET 61 

Something  for  nothing  always  attracts  customers.  Offer 
them  a  prize  with  a  certain  number  of  purchases  and  they  will 
keep  buying  until  they  secure  the  present.  Dealers  know  this. 
Therefore,  when  you  offer  the  dealer  a  legitimate  profit  on 
his  sales,  plus  presents  for  his  customers,  he  is  interested,  for  the 
inducement  is  something  tangible — it  will  draw  trade  to  his  store. 

In  addition  to  the  usual  selling  argument  used,  one  manu- 
facturer of  a  mechanical  device  offered  to  give  the  dealer  a 
delivery  cart,  made  to  represent  the  article.  "This  cart  will 
be  a  constant  reminder  to  your  customers  that  you  sell  this 
article,  and  it  will  be  a  continuous  advertisement  for  you," 

Concerns  making  food  products  have  found  the  free  dem- 
onstration proposition  a  winner  with  many  merchants.  If 
the  firm  is  trying  to  place  a  new  breakfast  food  or  a  brand  of 
canned  goods  or  a  beverage,  the  merchant  may  be  induced  ta 
put  in  at  least  a  small  order  on  the  strength  of  a  demonstration 
which  the  manufacturer  will  conduct  at  the  store.  A  personal 
representative  will  take  charge  of  it;  the  demonstration  will 
be  advertised  in  the  newspaper  and  by  personal  invitations 
to  the  ladies  to  call  and  sample  the  product.  No  man- 
ufacturer goes  to  the  expense  of  such  a  campaign  unless 
his  goods  have  merit  that  will  lead  to  sales.  So  if  the  mer- 
chant is  not  asked  to  lay  in  too  big  a  stock,  this  proposition 
is  almost  sure  to  get  his  name  to  an  order  blank. 

Frequently  a  manufacturer  will  try  to  secure  some  local 
influence  to  help  push  his  goods  onto  the  merchant's  shelves. 
An  advertising  contract  dangled  before  the  eyes  of  a  news- 
paper man  will  usually  induce  him  to  use  his  influence  with 
a  local  dealer  to  add  a  new  hne: 


"Would  you  like  a  contract  for  350  inches  of  roofing 
advertising?  This  is  all  new  busineeQ.  busineso  that  has  never 
been  placed  in  weekly  papers  before.  Electros  of  the  ads  are 
furnished;  you  will  be  at  no  expense  in  handling  this  high  class 
advertising. 

"If  you  want  this  business,  go  to  some  local  dealer 
and  get  him  to  place  an  order  for  100.000  feet  of  double  strength 
roofing.  This  is  the  best  roofing  ever  placed  on  the  market;  it 
will  be  easy  for  any  dealer  to  dispose  of  this  amount  in  a  few 
weeks  but  he  takes  no  risk,  for  the  manufacturera  will  buy  back 
at  the  end  of  the  year  all  unsold  material.  " 


62       WORKING  THROUGH  LOCAL  ORGANIZATIONS 

"And  if  your  paper  makea  good  on  this  advertising  it 
will  be  a  year-in  and  year-out  source  of  income.   The  whole 
thing  hinges  upon  your  confidence  in  your  own  medium  as  a  method 
of  selllns  roofing." 


Such  propositions  are  usually  made  through  an  adver- 
tising agency  and  the  newspaper  man  13  often  glad  to  act 
as  salesman,  for  the  advertising  is  "velvet" — business  that 
he  could  not  otherwise  get.  Then,  too,  he  wants  to  stand 
well  with  the  agency  in  order  to  get  its  future  orders. 

The  dealer  is  usually  anxious  to  curry  favor  with  the  press 
and  will  go  further  for  the  local  newspaper  man  than  for  any 
salesman  the  manufacturer  might  send  out.  Sometimes  the 
agency  writes  to  the  dealer  at  the  same  time  to  pave  the  way 
for  the  call  from  the  newspaper  man: 


"We  are  getting  ready  right  now  to  sell  more  roofing 
in  your  section  than  has  ever  been  sold  there  before.  Some  dealer 
can  pocket  the  profits  without  HISKIHG  OSB  PEH2JY.  Scores  of  new 
customero  can  be  brought  to  your  doors  asking  for  Double-atrengtli 
rorfing.   Do  you  want  then?  Your  competitor's  customers  will 
ccae  to  you  looking  for  Doubla-strength.   You  may  be  able  to 
make  them  your  customers  on  other  lines  as  well.   Do  you  want 
tha  opportunity?  Only  one  man  in  a  town  oan  sell  this  roofing. 
That  means  that  if  we  form  a  connaotion,  tha  undivided  profits 
from  the  e&les  of  our  gooda  are  yours  as  long  as  we  stay  to- 
gether.  You  are  the  only  man  wo  havo  written  to  because  you  can 
handle  the  distribution  most  conveniently." 


Occasionally  other  local  influences  are^  available.  Manu- 
facturers in  unionizing  a  factory  frequently  get  the  local  labor 
leaders  in  strong  union  towns  to  bring  pressure  to  bear  on  the 
merchants  to  handle  their  goods,  and  in  many  places  this  is 
a  powerful  influence.  In  rural  districts  the  manufacturer 
may  be  able  to  work  through  some  grange  organization,  and 
if  some  prominent  individual  can  be  induced  to  try  a  new 
machine  or  device  or  line  of  goods,  his  name  as  a  reference 
carries  weight  with  the  dealer,  and  the  same  argument  by  which 
the  manufacturer  induces  the  retailer  to  put  in  a  new  product 
b  available  for  the  merchant  in  moving  the  good.s. 

Dealers  are  almost  always  impressed  by  the  pubhcity  given 
to  any  widely  advertised  article.      Many   manufacturers  con- 


THE  INFLUENCE  OF  IVIAGAZINE  ADVERTISING      63 

cede  that  the  principal  benefit  to  be  derived  from  expensive 
magazine  advertising  is  the  effect  it  has  on  the  dealer,  for  oa 
the  strength  of  these  big  appropriations  many  retailers  are  in- 
duced to  lay  in  a  stock  of  goods,  the  only  advantage  of  which 
is  the  wide  publicity  given  to  the  brands  or  trade  marks.  Man- 
ufacturers try  to  persuade  the  merchants  to  put  in  a  stock  be- 
fore the  first  gun  of  the  campaign  is  fired,  but  there  are  some 
■who  never  climb  into  the  wagon  until  the  procession  starts. 
Here  is  the  way  one  manufacturer  wrote  to  his  luke-warm 
prospects  just  after  a  campaign  had  started: 


"last  week  the  houee  advertised  in  all  the  leading 
nagazines.  Special  French  Edge  Mattresses,  full  size--60 
poundS'-regular  price  030.00  at  the  reduced  price  of  $16.60 
each.  I  know  froic  inquiries  thet  a  display  in  your  window  will 
bring  in  the  sales  and  profits  to  you.  To  insure  you  a  good 
profit,  I  can  quote  you--on  lots  of  twelve. 

"This  offer  is  limited,  for  our  whole  purpoeo  at  thla 
tiae  is  to  get  a  live  dealer  in  each  tcvn.   If  you  don't  want  to 
handle  this  line,  someone  else  will,  so  we  can't  he  expected  to 
hold  the  field  open  in  your  city.   It  neans  profits  to  you  if  yoo 
get  husy  now   Write  at  once  or  telegraph  at  cur  expense." 


Exclusive  rights,  the  money-back-if-not-sold  proposition, 
free  advertising* in  some  form,  or  a  demonstration,  first  in  the 
field  with  a  new  article,  pressure  from  some  local  source 
these  are  the  methods  used  by  manufacturers  in  campaigning 
to  get  the  dealer.  Special  inducements  or  outside  influences 
are  the  forces  that  move  the  retailer.  The  proposition  is  always 
viewed  from  behind  the  cash  register  and  the  manufacturer 
has  a  hard  road  to  travel  in  introducing  his  new  product  unless 
it  has  some  ob-\nous  advantage,  some  convincing  talking  point 
or  a  selling  margin  that  will  magnetize  the  retailer's  store  and 
attract  customers  for  that  particular  article. 


Building    Up   A   Trade    For 

the  Retailer 

PART  XII     HOW  TO  OPEN  NEW  TERRITORY  BY  LETTER    CHAPTER  53 

THE  SHOP-KEEPER  naturally  buys  the  ''lines'' 
that  he  can  sell  most  readily;  his  greatest  profits 
come  from  the  goods  for  which  there  is  the  biggest 
demand.  He  gives  preference,  therefore,  to  mer- 
chandise for  which  the  market  has  been  created. 
The  manufacturer  who  assists  the  dealer  to  create 
the  market  paves  the  way  for  future  orders. 
This  is  one  way  of  doing  it 

MANY  manufacturers  seek  merely  to  get  their  goods 
on  the  merchant's  shelves,  depending  entirely  upon 
the  efforts  of  the  dealer  to  sell  theni,  and  order  more^ 
If  their  products  are  new  or  possess  some  conspicuous  merit 
or  improvement,  this  may  be  sufficient,  but  with  the  staples, 
where  competition  is  keen,  many  manufacturers  are  not  con- 
tent to  await  the  slow  growth  of  trade  built  up  by  merchants 
who  have  no  incentive  for  pushing  one  Une  in  preference  to 
others 

The  ambitious  manufacturer  is  not  only  willing  but 
anxious  to  help  the  merchanL  He  wants  to  stimulate  the 
demand  for  his  goods;  he  is  ready  to  spend  money  in  adver- 
tising in  giving  demonstrations,  in  distributing  samples — any- 
thmg  to  bring  his  products  to  the  favorable  attention  of  the 
public. 

The  first  step  is  to  secure  the  cooperation  of  the  dealer, 
and  the  offer  to  conduct  a  local  publicity  campaign  is  usually 
a  lever  that  brings  the  desirable  merchants  into  line.  The  most 
familiar  scheme  is  to  supply  the  dealer  with  a  stock  of  samples, 
provided  he  agrees  to  distribute  them  and  to  carry  sufficient 

5« 


THE  DISTRIBUTION  OF  FREE  SAMPLES  55 

stock  to  take  care  of  any  demand  that  may  be  created.  As  the 
manufacturer  finances  the  campaign,  the  merchant  is  in  the 
position  of  having  little  or  nothing  to  lose  and  much  to  gain. 
The  work  of  distributing  the  samples  is  slight  compared  to 
the  benefit  he  derives  from  bringing  so  many  possible  cus- 
tomers into  his  store. 

When  his  interest  is  enlisted  the  merchant  can  help  the 
cause  along  by  furnishing  the  manufacturer  with  names 
of  customers  and  prospects.  Frequently  his  own  sta- 
tionery is  used  to  give  the  letter  to  them  a  more  inti- 
mate   tone. 

Another  great  service  the  dealer  can  render  is  in  handling 
the  samples.  For  instance,  the  recipient  is  much  more  favor- 
ably irnpresscd  if  the  merchant  reaches  up  to  a  shelf  and  takes 
down  a  sample  than  if  he  dives  under  the  counter  and  drags 
it  forth  from  some  hidden  box.  Then,  too,  a  casual  word 
about  the  quality  of  the  goods  or  calling  the  recipient's  atten- 
tion to  some  new  feature  leaves  an  impression  that  is  hkely 
to  germinate  into  a  demand  for  something  more  than  a  sample. 
These  little  points  are  urged  upon  the  dealer  as  his  share  ia 
making  the  campaign  a  success. 

SCHEME    1— THE  CARD  THAT  IS  EXCHANGEES  FOR  A  FREE    SAMPL^ 

These  preliminary  steps  having  been  taken,  the  manufacturer 
goes  out  to  round  up  possible  customers.  Here  is  the  letter 
sent  out  by  the  distributers  of  a  new  brand  of  coffee: 


Dear  Uadeua: 

Will  you  let  us  ohow  you  shat  dellciouo  coffee  25 
cents  a  pound  nill  buy? 

Then  get  a  package  of  B.  B.  brand  and  try  It  at  our 
risk. 

You  would  scarcely  believe  that  such  delioloua  coffoa 
could  bo  sold  at  25  cent3--unle83  you  happened  to  know  that  the 
flavor  of  coffee  depends  largely  upon  the  blending. 

The  blending  of  coffee  has  been  a  life  study  with  us. 
We  know  just  how  much  of  ono  kind  to  use  for  richness,  of  another 
for  delicious  flavor  and  of  a  third  for  its  exquisite  aro.vi. 

The  result  la  the  B.  B.  blend  that  wo  want  you  to  try. 


56 COUPONS  AND  CERTIFICATES 

The  B.  B.  is  sealed  in  air  tight  packages  while  crlep 
from  the  oven.   Our  roaeter,  a  nan  of  thirty  years'  experience, 
can  toll  you,  by  the  look  of  the  coffee  berries,  just  how  much 
lieat  13  necessary  to  bring  out  their  full  flavor  and  fragr&nce. 

The  Central  Grocery  will'  handle  the  B.  B.  coffee,  and 
«e  have  instructed  the  proprietor  to  give  you  a  sample  package 
with  our  complimentB.  Tailce  it  home  and  try  it--that  i8  all  wa 

ASk. 

Remember  you  can  purchase  a  pound  package  for  25 
cents.   If  you  like  the  sample,  try  a  full  package,  and  remember 
that  if  you  are  not  entirely  satisfied  that  it  is  the  most 
delicious  coffee  you  ever  tasted  for  that  price,  one  word  to  tha 
Central  Grocery  and  they  will  refund  your  money. 

Don't  be  satisfied  until  you  know  what  delicious 
coffee  your  twenty-five  cents  will  buy. 

Very  truly  yours. 


Samples  promiscuously  handed  out  or  piled  up  on  thQ  coun- 
ter or  in  a  basket  with  a  "Take  One"  card,  do  not  begin  to  bring 
such  results  as  the  samples  that  are  judiciously  distributed  after 
a  letter  has  interested  the  recipient  in  the  article. 

This  lure  of  the  free  sample  appeals  to  the  men  no  less  thaa. 
to  the  women,  if  the  article  is  something  they  use.  Distributers 
of  tobacco  products  use  this  method  frequently. 

After  a  dealer  has  been  secured  in  a  place,  a  company 
sends  out  the  following  letter  to  known  smokers  of  the  better 
grade  of  cigars: 


"Wouldn't  you  like  to  find  a  cigar  that  combines  Just 
tr.e  right  blendlnR  to  give  it  aroma  and  fragrance,  without  the 
usual  weedy  taste?  These  cigars  ere  made  of  the  finest  selected 
Havana  leaf --but  we  shall  not  try  to  describe  them-  instead  wa 
ere  going  to  give  j-ou  one,  just  a  sample,  that  you  may  try  it, 
without  spending  your  Boney,  and  judge  "for  yourself.   Go  into 
Brown'9  store  tcmcrrow  noon  after  lunch  snd  give  him  this  coupon, 
Ee  will  hand  ycu  e  cigar  with  cur  ccmpllments.  ° 


Such  methods  are  more  expensive,  but  they  bring  results.. 
The  letter  can  be  depended  upon  to  pull  the  prospect  into  the 
store  for  the  sample,  and  ha\ing  done  this,  it  has  accomplished, 


THE  "REFUND"  IS  REASSURING  57 

its   mission.     Future  sales  depend  entirely  upon  the  quality 
of  the  goods. 

Frequently  a  coupon,  which  the  lady  can  exchange  at  the  store 
for  a  sample  package,  is  enclosed.  Here  is  a  letter  that  a  large 
manufactxirer  used  extensively: 


Dear  Hadaa: 

Tho  enclosed  card  certificate  entitles  yoa  to  e  fullr 
sized  can  of  Harvey  face  powder--ABS0LUT2LY  JTIEB. 

The  Harvey  face  powder  matee  a  wome.n'e  complexion 
snooth  and  velvety.   The  ekla  does  not  looe  ite  youthful  at- 
tractiveness: it  eeene  to  be  impervious  to  exposure.  The  eua 
ind  wind  have  no  terrors  for  the  woman  using  Harvey**. 

IT  prevents  that  oily,  ehiny  appearance  and  counter- 
icta  the  disagreeable  offoots  of  perepiratlon. 

If  this  were  merely  an  empty  clala  we  could  not  afford 
to  give  you  a  full-sized  sample  package  free.  We  know  that  once 
you  have  used  Harvey's  you  will  insist  on  having  It  always  at 
hand. 

To  secure  this  free  package  ell  you  have  to  do  le  to 
present  the  certificate  to  the  Pioneer  Drug  Store  which  will 
handle  all  the  Harvey  toilet  preparatlono. 

RTafTIMBlgl  this  offer  is  good  for  three  dayt  only. 

Very  truiy  yours, 

nXRVSTi  TACS  P0TE3ra  CO. 


In  this  case  an  elaborate  certificate  was  filled  in  with 
the  lady's  name,  and  emphasis  was  put  on  the  time  limit  of  the 
offer.  Both  of  these  things  enhanced  the  importance  of  the 
sample,  and  practically  all  the  coupons  sent  out  were  presented 
at  the  drug  store  for  redemption. 

SCHEME  ?— THE  OFFER  TO  REFUND 

There  are  manufacturers  who  contend  that  the  sample  dis- 
tribution is  too  expensive  and  that  as  good  results  can  be  ob- 
tained by  emphasizing  the  satisfaction-guaranteed  feature.  And 
many  have  found  that  a  letter  will  pull  trial  orders  if  the  money- 
back-if-not-satisfactory    offer    looms    up  promineatly  enough. 


58  THE  "MONEY  BACK"  PROPOSITION 

A  large  coffee  house  found  this  method  effective,  but  made 
the  campaii^n  more  personal  by  mailing  out  letters  on  the 
dealer's  stationery  over  his  signature  w-ith  a  hard  and  fast 
guarantee  to  refund  the  money  for  every  package  that  did  not 
prove  absolutely  satisfactory: 


"You  will  find  any  grade  of  coffee  here  you  want;  we 
carry  all  the  well  known  trands.   But  jxxet   now  we  want  to  suggest 
your  trying  a  package  of  Eupero--a  new  trend  that  seems  to  us  to 
have  just  the  blending  to  make  "it  popular  with  those  who  want 
the  test. 

"Of  course  you  may  not  like  it  for  tastes  naturally 
differ.  But  eo  confident  are  we  that  Supero  will  please  you  that 
we  will  take  back  broken  packages  and  refund  the  full  purchase 
price,  if  you  are  not  satisfied. 

"We  know  some  coffee  will  come  back  for  there  is  noth- 
ing that  will  please  everyone  but  we  are  convinced  that  ninety- 
five  per  cent  of  the  trial  users  will  be  delighted  with  it.   That 
is  why  we  make  this  absolute  guarantee  of  satisfaction. 

"May  we  not  Include  a  package  with  your  next  order  for 
groceries?'' 


The  manufacturer  of  course  has  to  back  up  the  dealer  in 
the  refund  without  question,  but  it  is  assumed  that  no  one  makes 
such  an  offer  unless  he  is  reasonably  sure  that  the  product  will 
caxry  satisfaction. 

In  these  schemes  the  letter  forms  the  keystone  of  the  pubh'city 
campaign.  It  is  the  most  formidable  agency  in  opening  up 
new  territory,  but  it  must  be  used  with  care  to  direct  every 
letter  to  a  likely  customer  and  thereby  avoid  costly  leak- 
age. Create  the  demand  and  center  the  pioneer  work  on 
a  single  dealer — the  demand  will  then  force  other  dealers  to 
put  in  the  line  if  it  is  a  staple  that  can  be  handled  by  different 
merchants. 

SCHEME  3— PRIVATE  DEMONSTRATIONS 

There  are  products  that  cannot  be  advertised  by  samples 
or  by  a  public  demonstration,  but  this  does  not  prevent  manu- 
facturers from  doing  effective  work  in  bringing  customersl 
.to  the  dealers. 


LETTERS  THAT  EXPLAIN  •■HOW" 55 

The  manufacturer  of  automobiles  uses  personal  letters 
extensively  to  round  up  prospects  and  get  tliem  to  call  on  the 
local  dealer  or  representative.  These  letters  bulge  with  "reason 
why"  copy,  showing  how  easy  it  is  to  maintain  the  car  and  how 
cheaply  it  can  be  operated.  Here  is  part  of  a  letter  that 
points  the  way  to  the  dealer: 


"The  Klngley  is  not  an  assembled  car,  tli3  parts  comlns 
from  all  parts  of  the  country.   Every  part  except  the  magneto 
and  the  tires  are  made  in  our  own  plant  or  expressly  for  us. 

"The  raw  materials  and  the  finished  parts  are  8ubmi-tte4 
to  the  most  rigid  teats  and  the  most  careful  inspection.  Hor 
■are  we  satisfied  with  a  floor  test;  every  completed  machine  l3 
thoroughly  tested  on  the  road,. 

"But  It  is  hard  to  carry  conviction  by  letter — go  to 
Ur.  Wallace,  our  local  representative,  and  ha  will  gladly  give 
you  a  convincing  demonstration.  Or  teleohono  Central  689  and  .ha 
will  call  with  the  machine. 

"We  are  glad  of  this  opportunity  of  writing  you  but  V9 
don't  Bell  machines  by  letter--the  other  fellow  may  be  able  to 
write  Just  as  good  a  letter  but  he  can't  show  you  such  a  reli- 
able, durable,  economical  machine  at  thia  price." 


The  letter  to  the  consumer  must  play  up  quality,  merit  and  spe- 
cial advantages  offered.  The  dealer  sees  only  the  selling  feature,, 
but  the  consumer  must  be  reached  from  the  angle  of  desirability 
for  some  specific  reason.  If  you  can  show  the  dealer  that  your 
goods  have  "convertible"  qualities  there  is  littTe  trouble  ia 
opening  up  new  territory  by  letter.  If  the  article  has  novel 
or  distinguishing  features  they  can  be  utilized  in  interesting 
the  prospect;  otherwise  the  sample,  the  free  trial  and  the  satis- 
faction-guaranteed arguments  must  be  brought  into  service 
to  interest  the  consumer  and  pull  him  into  the  store — all  that 
a  letter  can  be  expected  to  do. 


Introducing  The  Salesman 
And  Backing  Him  Up 

PART  XIII       USING  LETTERS  ON  THE  DEALER  TRADE     CHAPTER  56 

THERE  WAS  a  time — and  not  so  very  long  ago 
— when  a  salesman  was  given  a  state  WMp  arm  told 
to  go  out  and  get  the  business.  But  today ^  the  pro- 
gressive house  assists  the  salesman  by  a  care- 
fully planned  LETTER  CAMPAIGN.  If  it  is  a  new 
housey  it  secures  a  list  of  prospects  and  introduces 
itself  by  maily  gives  information  abovi  its  goods 
una  shows  the  dealer  Iww  he  -mighi  profit  by 
haridling  them.  CONFIDENCE  IS  EsTABLBBED  arid 
the  way  paved  for  the  salesman.  After  the  pros- 
pect bec6)ties '  a  customer ^  letters  between  sales' 
vmns  calls  keep  the  name  of  the  house  and  its 
product  before  him.  At  every  stage,  letters  co- 
operate with  the  salesman— hack  him  up  and. 
reinforce  his  personal  efforts 

EVERY  house  selling  through  salesmen  can  use  to  advaa- 
tage  some  form  of  cooperative  service  that  will  back  up 
the  men  in  the  field,  relieve  them  of  many  details  and 
gather  up  the  shag  ends  of  business. 

Whether  the  product  is  a  specialty  or  a  staple,  whether  sold 
direct  to  consumer  or  through  dealers,  the  cooperative  letters 
are  of  great  assistance.  Much  of  the  preliminary  work  of 
introducing  a  product  and  educating  prospects  can  be  carried 
on  by  letter,  paving  the  way  for  the  salesman  to  enter  at 
the  proper  time  and  close  the  sale. 

Advertising  plays  an  important  part  in  introducing  new 
products  and  preparing  the  field  for  the  saleeman  but  the  letter 


LOCATING  NEW  PROSPECTS  81 

is  the  most  valuable  auxiliary,  as  it  can  be  made  applicable  to 
the  small  jobber  and  the  large  manufacturer. 

The  educational  work  may  extend  over  months  and  by  using 
letters  for  this  purpose  the  salesman  can  center  all  his  efforts  on 
a  final  canvass  that  will  get  the  order.  If  the  product  is  a 
staple  the  letter  may  be  used  to  introduce  new  policies  or  methods 
and  to  stimulate  the  business  in  the  less  productive  territories. 

Effectiveness  in  auxiliary  service  can  not  be  obtained  without 
an  organization  in  the  correspondence  department  that  will 
insure  a  discriminate  handling  of  the  letters.  It  must  provide 
some  system  for  securing  accurate  information  about  the  condi- 
tions in  the  field;  a  reliable  method  of  keeping  in  touch  with  the 
salesmen  and  a  method  of  checking  lists,  mailings  and  replies. 

A  knowledge  of  conditions  on  the  firing  line  is  secured  through 
salesmen's  reports  and  letters  from  prospects.  Most  houses 
require  their  travelers  to  furnish  data  that  will  enable  the  cor- 
respondents to  strike  a  personal  note  in  their  letters.  Salesmen 
are  also  required  to  report  changes  in  routes — which  are  followed 
by  a  map  and  tack  system — so  that  new  prospects  can  be  turned 
over  at  any  time  or  instructions  sent  out. 

Keeping  department  records  is  comparatively  easy.  A  card 
is  filled  out  when  an  inquiry  comes  in  and  additional  data  is 
secured  from  salesmen's  reports.  Each  card  should  be  a  his- 
tory of  the  relations,  showing  sales  or  reasons  for  not  buying 
and  other  information  that  will  assist  the  correspondent. 

One  of  the  most  important  services  of  the  cooperative  letter 
is  to  locate  possible  buyers  in  order  to  avoid  wasting  time  and 
money  on  persons  who  are  not  likely  to  develop  into  purchasers. 

So  the  original  letter  must  offer  an  inducement  to  the 
inquiry,  so  worded  that  it  will  not  attract  curiosity  seekers. 
To  get  a  line  on  those  who  may  possibly  need  a  cash  register, 
one  manufacturer  says  in  his  letter: 


"2ven  though  you  may  not  need  a  cash  register  In  your 
store  at  the  present  tiae,  any  auggestiona  that  will  stop  leaka 
In  your  profits  will  ha  valuahle  to  you.  Juat  sisn  the  enclosed 
return  card  and,  without  ohligating  yourself  in  any  way,  you  can 
secure  one  of  our  booklets  on  'Elininating  Errors  in  Handling  the 
Cash,'  which  is  packed  full  of  intensely  interesting  schemes  and 
plana  used  hy  live,  progressive  husiness  nen.  " 


62  APPEALING  TO  THE  DEALER'S  JUDGMENT 

While  the  booklet  gives  some  valuable  information,  it  is  in 
reality  an  educational  document  on  the  use  of  cash  registers. 
The  request  for  the  booklet  or  other  inducement  offered, 
turns  the  indefinite  name  into  a  likely  prospect  and  the  inquiry 
is  followed  up  with  a  selling  proposition.  This  campaign  aims 
merely  to  get  an  indication  of  interest  so  the  house  may  know 
when  to  turn  the  procpect  over  to  a  salesman.  But  it  goes 
further  and  creates  confidence  in  house,  proposition  and  goods. 

This  letter,  however,  should  pave  the  way  for  the  approach 
of  the  salesman.  It  must  lead  up  to  the  personal  factor  in  the 
sale  with  the  letter  campaign,  and  do  this  so  as  not  to  frighten 
away  the  prospective  buyer. 

Incase  the  product  is  one  that  goes  to  the  dealer,  his  confidence 
is  gained  by  some  assurance  that  the  article  v/ill  sell  readily. 
The  letter  should  impress  upon  the  merchant  that  he  takes  no 
risk  in  stocking  up  on  goods  that  are  sure  to  bring  back  quick 
profits.  So  a  manufacturer,  seeking  to  make  the  sale  to  dealers 
easy  for  his  salesman,  writes: 


"We  don't  expect  you  to  take  our  word,  absolutely--all 
we  aak  ia  an  opportunity  to  prove  the  claims  we  make  for  these 
garments.   We  are  so  confident,  however,  that  the  goods  will  al- 
most sell  themselves,  that  It  is  possible  to  make  you  this  un- 
usual offer:  you  try  the  goods,  and  we  agree  to  take  back  any 
unsold  garments  at  the  end  of  sixty  days  " 


If  the  product  is  such  that  a  sample  can  hs  sent,  this  !3  the 
strongest  method  of  creating  confidence  in  the  goods.  Thus  the 
selling  plan  of  a  corset  manufacturer  is  to  send  samples  to 
prospective  buyers  as  soon  as  any  signs  of  interest  is  shown. 
And  he  seeks  to  gain  their  confidence  by  an  ''up-to-you'* 
letter.  A  large  wholesaler  strikes  straight  at  the  dealer's  in- 
terest, by  an  appeal  to  his  business  judgment: 

"Suppose  you  can't  sell  a  big  stock  of  these  goods 
right  off  the  bat;  you  will  sell  a  few,  and  ycu  aty  bo  sura  of 
this  fact:  those  who  buy  will  come  back  again.   And  here  is  the 
point;   In  case  you  find  that  you  can  use  a  stock  of  our  corsota. 
we  will  agree  to  advertise  in  your  local  papers  and  to  circular- 
ize the  women  of  your  com^iunity  with  our  literature.   We  will 
direct  the  trade  to  your  Dtore  If  you  will  talco  oare  of  It.  " 


FAI^JMING  THE  PROSPECT'S  INTEREST  63 

To  introduce  the  salesman  to  a  prospective  buyer  re- 
quires considerable  tact.  It  is  not  usually  advisable  for  a 
letter  of  introduction  to  ask  point  blank  for  the  privilege  of 
sending  a  salesman  to  the  prospect.  Few  men  care  to  be 
bothered  by  salesmen  unless  they  are  decidedly  interested  in  a 
proposition  or  unless  a  demonstration  is  necessary  to  satisfy 
them  regarding  some  particular  advantage  in  the  product.  Even 
■«\  hen  a  demonstration  is  necessary,  the  prospect  hesitates  to  ask 
a  salesman  to  call  for  fear  that  he  vv'ill  feel  obligated  to  buy. 
So  the  introductory  letter  must  bring  forward  the  salesman 
very  diplomatically.  One  clothing  house  opens  the  path  for 
its  representative  in  this  way: 


"You  have  examined  the  aamplea  sc  mailed  yci  and  prolja- 
tly  tested  them  thoroughly  by  this  time.  But  any  tests  you  might 
Cive  them  would  not  be  as  satiBfactory  to  you  as  a  few  minutes' 
tcilk  with  our  oale3man--or  possibly  his  personal  demonstration. 
Co   when  Er.  Jones  visits  your  town  next  week  we  will  tare  him 
call  oy>  you  and  talk  over  the  proposition.  " 


The  prospect  may  reply  that  he  will  see  the  salesman  on  the 
understanding  that  he  does  not  agree  to  place  an  order;  more 
likely  he  will  not  answer  at  all.  In  any  event,  the  salesman  i3 
notified  that  the  prospect  is  "open."  For  convenience  and 
economy,  a  form  post  card  is  frequently  used  giving  the  pros- 
pect's name  and  address,  together  with  any  special  information 
that  the  salesman  should  know. 

So  by  this  cooperative  service,  th*>  salesman's  hardest 
work — the  education  of  the  prospect  to  the  buying  point  and  the 
approach  to  the  order — is  made  easier.  The  goods  are  known, 
the  proposition  has  been  made  clear  and  the  prospect  expects  a 
personal  call.  Then  if  he  lands  the  order  the  notification  card 
is  usually  returned  with  the  word  "sold"  marked  across  its 
face,  together  with  the  order.  If  he  fails  to  close  the  sale  he 
writes  the  house  the  facts  which  will  indicate  just  what  treatment 
the  prospect  should  receive  from  later  letters. 

For  convenience  in  handling  these  reports,  one  manufacturer 
supplies  salesmen  with  form  cards,  on  which  he  notes  any  in- 
formation which  may  be  useful  to  the  house  in  a  later  follow-up. 
Then  this  card  is  placed  in  an  index  labeled  "Special  Educational 
Letters"  or,  "Prospects  Seen  and  Not  Closed."    Since  the  sales 


64 


SMOOTHING  THE  WAY  FOR  THE  SALES^L\N 


man  inay  be  called  back  to  complete  the  sale,  copies  of  these 
letters,  whether  educational  or  merely  reminders,  are  sent  to  him. 
Often  after  the  personal  call,  the  arguments  used  oa  the 
prospect  by  letter  will  be  more  effective  if  sent  out  over  the 
salesman's  signature.  The  touch  of  indiuduality  adds  effect- 
iveness. Many  firms  even  send  such  mailings  out  on  the  sales- 
man's personal  letter  paper.  Others  make  up  the  letters  and 
send  them  to  the  salesman  for  mailing.  The  careless  use  of 
such  letters  is  checked  by  requiring  the  salesman  to  pay  the 
postage  and  his  extra  expense  may  be  covered  by  an  additional 
commission  on  sales. 


//VV/^ 


OfTLCMEK. 


Wl  WOULD  BE    PtCftSEO  TO  HAVE    «   BEPBt  SE  K  T  ATI  V  £    CALl 


ON  OUR  MM 


J^^\^9      ^ 


»airiT»«r^l<AT    //^^        O'CLOCK.  AND  EXPLAIN    THE    CMALLENOt     ANO 
8H0AI  US  SAMPII3  OP  THE  WORK  DONE  On   THIS  WACMiflC 

MA«.r  (S^gg^-iT^  rr^,^  -■•'C/a-Vc^^i-^g^Ky   Y-    ^ . 


■»  <;g^^^l^^f,,  /?-£-. 


A  double  post  card  sent  to  the  'prospect  vnih  a  request  that  he  name  a  date 

on  tfie  allaclied  card  when  a  representative  viaij  call.     This  is  often  an 

effective  meUwd  of  insuring  a  hearing  for  the  salesman 


In  many  cases  the  refusal  of  the  prospect  to  order  is  but 
temporary.  His  *'do"  merely  indicates  that  he  fails  to  appre- 
ciate its  particular  value  to  him,  or  possibly  some  business 
condition  temporarily  makes  it  impractical  for  him  to  order. 

So  with  the  salesmen's  "visit  report  card"  the  house 
indicates  the  course  to  be  followed.  It  may  be  necessary 
to  follow  up  the  prospect  with  another  series  of  educational  let- 
ters, or  merely  keep  the  prospect  in  touch  with  the  proposition, 
until   he  is  in  position  to  handle  the   goods. 

Then  when  the  salesman  has  been  called  back  to  the  pros- 
pect and  has  secured  the  signature  on  the  order  blank,  the 


THE  VARIED  USE  OFPOST  CARDS 


65 


Every  business  man  can  use  post  cards;  three  different  uses  are  shown  above 
The  first,  containing  a  map,  gives  emphasis  to  the  favorable  location  of  a 
hotel;  the  second  is  a  colored  advertisitig  card  containing  at  the  side  the 
name  and  address  of  the  local  dealer;  the  third  is  a  novel  return  post  card 
on  which  a  business  man  may  readily  indicate  the  most  convenient  time  for 
the  salesman  to  call 


66 


MAILING  FOLDERS  ARE  ATTENTION-GETTERS 


Colored  cards  and  mailing  folders  are  now  a  factor  in  business.  At  the 
top  are  shown  part  of  a  series  mailed  in  a  sales  campaign  for  a  new  brand 
of  tobacco.  The  cards  are  folded  twice  and  a  one  cent  stamp  is  used  as  a 
seal  to  hold  the  fold  together.  Three  lower  views  are  colored  cards  illus- 
trating products  that  are  tvidely  advertised;  the  fourth  card  is  one  of  a 
series  sent  out  by  a  bank  to  advertise  its  savings  department 


CETTING  THE  DEALEJl  IN  THE  RIGHT  MOOD       67 

house  cooperative  letters  must  put  the  buyer  into  the  "right 
mood"  before  the  goods  are  received.  Whether  the  product  is 
a  specialty  or  a  staple,  it  is  an  asset  to  have  the  good  will  of  pur- 
chasers. The  prompt  acknowledgment  of  orders  and  care  in 
shipping  go  a  long  way  towards  creating  this  spirit. 

One  manufacturer  follows  the  shipment  notices  a  step 
farther  and  secures  names  of  prospects  from  the  buyer.  "Aren't 
there  one  or  two  of  your  business  friends  who  are  in  the  market 
for  our  product?"  he  asks  in  his  letter.  As  an  inducement  he 
ofTers  small  commissions  on  any  sales  made  to  prospects  whose 
names  are  furnished  in  this  way. 

Then  an  approach  can  be  made  under  specially  favorable 
conditions.  A  letter  is  doubly  effective  if  it  opens  with  some 
such  approach  as  this:  "Your  friend,  Mr.  Blank,  suggested 
that  you  would  soon  be  in  the  market  for  our  goods,"  or,  "When 
we  left  one  of  our  machines  at  Mr.  Brown's  store  last  week, 
he  suggested  that  you  might  be  interested  in  our  proposition." 

Or,  in  case  the  prospect  is  hard  to  convince,  the  house  baa 
the  additional  backing  of  the  buyer.  For  example,  one  manu- 
facturer of  gas  engines  uses  the  influence  of  purchasers  in  this 
way:  "Why  not  talk  with  Mr,  Blank  and  see  what  he  thinks 
of  our  engine  and  its  efliciency?" 

If  the  buyer  has  indicated  a  willingness  to  cooperate  in 
future  sales,  the  effectiveness  of  an  argument  of  this  kind 
in  letters  that  precede  the  call  of  the  salesman,  is  obvious: 


"Take  a  leiaura  monent  and  go  over  to  Ur.  Blank's  place 
where  we  last  week  installed  a  Radiating  System.   Aak  a  tnan  who 
has  used  our  heating  system  and  you  will  readily  lea^-n  of  its 
practical  advantages.   See  our  Radiating  System  in  practical 
operation  and  then  remember  that  we  hack  it  up  hy  our  hinding 
guarantee  of  satisfaction." 


But  if  the  first  order  is  sent  to  the  dealer  on  a  guarantee, 
then  house  cooperative  letters  not  only  emphasize  the  uigh 
quality  of  the  goods  but  suggest  ways  of  moving  them  from  the 
dealer's  shelves,  and  they  impress  tlie  buyer  with  the  desire  of 
the  house  to  aid  him,  incidentally  keeping  his  mind  focused 
on  future  orders. 

A  wholesale  grocery  follows  up  the  trial  order  with  a 
letter   designed    to    aid    the    dealer    in    turning   the  goods. 


68  PRACTICAL  HELP  IN  TUPJslNG  GOODS 

for  it  realizes  how  easily  the  dealer  can  swing  sales  for  his  pro- 
duct.   Here  are  the  opening  paragraphs: 

"Ju3t  Btop  to  consider  and  you  will  remem'ber  that  fully 
one-third  of  your  sales  on  any  articles  come  through  some  re- 
minder to  your  customers  that  they  need  the  goods.  Then  think 
how  important  it  is  that  you  display  goods  where  your  customers 
will  see  them  and  Tae   reminded. 

"Can't  you  arrange  them  attractively  on  your  shelveev 
Or  perhaps  arrange  a  window  display?  Either  plan  is  bound  to 
help  you  m  turning  out  the  goods.  Our  specialty  man.  Mr.  Blank, 
will  be  able  to  give  you  some  valuable  suggestions.  He  will 
visit  you  again  during  the  next  two  weeks,  probably  about  the 
12th  of  the  conth   Talk  the  matter  over  with  him  then  " 

Another  purpose  is  often  served  by  the  house  cooperative 
letter  in  helping  tlie  salesman  to  push  a  new  brand  of  goods. 
A  letter  that  shows  the  dealer  a  possible  loss  in  profits  or  in 
customers  by  not  handling  the  new  brand,  is  usually  helpful  in 
bringing  him  into  line.  One  wholesaler  sends  out  a  letter  of 
this  kind  in  advance  of  the  salesman's  call: 


Dear  Sir: 

Have  you  figured  ourt  what  It  costa  you  not  to  handle 
our  new  Government  Seal  Lard? 

It  is  costing  you--each  day — the  time  and  the  labor  of, 
eay.-one  hundred  diggings  out  of  the  tub--on(J  hundred  weighings 
--one  hundred  wrappings,  and  one  hundred  tleings. 

Then  it  is  costing  you  the  value  of  endless  .overweight. 

It  is  costing  you — and  this  is  the  biggest  item — cus- 
tom that  you  might  have,  but  are  now  losing,  of  people  who  want 
their  food  for  family  use  safeguarded  against  dust  and  unsani- 
tary handling--tha  people  who  mates  the  best  customars  and  are 
most  worth  pleasing.  Our  new  Gove rtynont  Seal  Lard  comes  In 
air-tight  paila. 

Set  these  figures  over  against  the  difference  in  prlco 
Cf  Government  Seal  end  ordinary  lard  and  you  will  understand  whj 
Government  Seal  costs  less  than  any  lard  you  buy  in  bulk.  Talk 
to  Mr.  Brown  when  he  «alla — he  will  show  you  some  interesting 
figures  on  this  matter. 


Very  truly  yours, 


ONE  FORM  OF  SALESMAN'S  REPORT  CARD 


C9 


NO.  1 

LETTER  CO-OPERATION  PEPARTMENT 


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THE  BACK  ANO  OBLIGE 


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Fronf  Gruf  reverse  sides  of  notification  card.  A  card  of  this  kind  ii 
sometimes  used  by  tJie  corresporuknce  cooperative  department  to  notify 
ilie  salesman  on  the  road  wlien  a  prospect  is  educated  up  to  the  point 
where  a  personal  cull  will  close  tJie  sale.  After  the  call  the  salesman 
returns  the  card.  It  is  marked  with  the  single  word  "SoW"  arross 
Ike  face  if  it  accompanies  an  order;  otlierunse,a  report  for  the  assistaiice 
of  the  letter  dejiartment  is  made,  as  indicated  at  tlie  bottom  of  tlte  card 


70  RELIEVING  THE  SALESMAN  OF  DETAILS 

After  the  dealer  has  received  a  letter  of  this  kind,  the  sales- 
man, following  a  few  days  later,  finds  him  in  a  more  receptive 
mood.  The  letter  started  him  thinking  and  the  sale  was  half 
completed.  So  the  cooperative  letters,  besides  handling  pro- 
spective customers  up  to  the  point  of  the  sale,  turning  con- 
sumer-buyers into  assistants  to  the  salesman,  and  insuring  satis- 
faction to  the  dealer's  trial-order,  may  also  aid  the  representa- 
tive in  his  regular  customer  calls. 

»  There  is  still  another  important  function  of  this  cooperative 
service — assisting  in  the  disposal  of  the  inevitable  "left-overs." 
The  small  dealer  usually  depends  upon  these  odds  and  ends 
from  the  manufacturer  to  furnish  the  material  for  his  retail 
store  "  leaders "  and  the  salesman  is  usually  too  intent  up>on 
selling  his  regular  stock  to  devote  valuable  time  to  "  left-overs  '* 
and  "cut-price"  goods. 

So  house-letters  take  this  work  off  the  shoulders  of  the 
salesman.  They  announce  the  fact  that  such  goods  are  ready 
for  disposal,  quote  the  prices,  do  all  the  educational  work  and 
frequently  land  the  order.  Or,  if  they  do  not  actually  secure 
the  order,  they  have  "  worked  up  the  sale"  so  that  it  is  little 
more  than  formality  for  the  salesman  to  pick  it  up — leaving 
him  free  to  devote  his  time  to  the  more  important  lines. 

The  field  for  house  cooperative  letters,  considering  the  many 
angles  from  which  they  may  be  applied,  are  a  vitally  im- 
portant factor  to  the  salesman  in  the  field.  When  you  con- 
sider that  the  average  salesman,  either  because  of  limited 
time  or  the  small  margin  on  these  goods,  must  neglect  them  al- 
together, or,  at  the  best,  handle  them  in  an  unsatisfactory  man- 
ner, the  pressing  need  of  cooperative  letters  becomes  apparent. 
As  auxiliary  sales-producers,  they  have  proved  their  value  in  al- 
most every  line  of  business — they  are  one  of  the  most  coa* 
venient  and  profitable  forces  in  trade  building. 


Keeping  In   Touch  With  The 

Dealer  By  Mail 

PART  XIII         USING  LETTERS  ON  THE  DEALER  TRADE    CHAPTER  57 

ONE  OF  the  hard  problems  of  the  wholesaler^ 
manufacturer  and  jobber  is  to  Maintain  a  Point 
OF  Contact  with  the  distant  dealer.  The  loyal 
salesman  is  a  good  medium,  but  such  a  medium, 
lacks  permanency.  The  house  tliat  seeks  to  hold 
the  dealer  with  stronger  bonds,  reinforces  the  work 
of  salesmen  by  letters  between  calls.  How  such  let- 
ters can  be  made  to  DEVELOP  GOOD  will  and  keep 
a  current  of  mutual  interest  circidating  between 
the  house  and  the  dealer  is  here  described 


ONE  of  the  large  manufacturers  of  shoes,  not  long  ago, 
found  the  business  in  certain  sections   steadily  falling 
off.     Some  of  the  heaviest  buyers  v/ere  cutting  down 
their  orders;  several  accounts  were  closed. 

The  trouble  could  not  be  with  the  shoes,  for  the  same  rigid 
standard  was  maintained.  The  loss  of  business  was  evidently 
due  to  changes  in  the  sales  department.  One  veteran  salesman 
had  died,  a  second  had  retired,  a  third  had  resigned  to  go  with 
another  concern,  and  there  had  been  a  general  shifting  of  terri- 
tories to  the  great  detriment  of  the  business. 

The  company  had  always  paid  big  salaries  and  hired  good 
salesmen,  dejiending  upon  them  lb  bring  in  the  business.  Evi- 
dently it  had  been  a  mistake  to  depend  so  entirely  on  salaried 
representatives.  No  effort  had  ever  been  mad6  to  bring  the 
dealers  into  personal  touch  with  the  house.  Customers  were 
loyal  to  salesmen  rather  than  to  the  company;  the  salesmen 
carried  the  trade — not  the  house* 

71 


72  ESTABLISHING  A  POINT  OF  CONTACT 

The  necessity  of  adopting  a  new  policy  was  apparent.  Let- 
ters were  sent  out  over  the  president's  signature,  asking  the 
dealers  about  local  conditions,  what  the  prospects  were  for 
trade,  what  ways  they  could  suggest  for  pushing  their  business. 
The  letter  went  on  to  outline  an  extensive  advertising  plans 
asking  the  dealer's  advice  regarding  it  and  urging  him  to  make 
suggestions  as  to  changes  in  the  proposed  campaign. 

The  letter  was  an  intimate  man-to-man  talk  based  on  the 
mutual  interests  of  manufacturer  and  retailer- and  emphasized 
the  desirability  of  getting  together  to  try  out  some  new  trade- 
winning  schemes.  Not  a  word  was  said  about  sales;  no  refer- 
ence was  made  to  the  falling  off  in  orders;  the  letter  aimed  to 
establish  a  point  of  contact  between  the  house  and  the  dealer — 
nothing  more.  The  merchants  replied,  almost  to  a  man. 
Where  specific  suggestions  were  made,  the  house  planned  aspecial 
advertising  campaign.  Space  was  taken  in  the  local  papers,  the 
house  preparing  "copy"  and  paying  half  the  cost;  window- 
trims  were  suggested  and  special  sale  schemes  worked  out. 

Within  six  months  the  company  had  not  only  gained  the 
ground  it  had  lost,  but  new  records  were  being  made.  Distant 
dealers  began  to  look  on  the  company  as  something  more  than 
a  factory;  it  gradually  acquired  a  personality;  it  took  a  warm 
interest  in  the  problems  of  the  retailer  and  offered  help,  not  in 
a  perfunctory  sort  of  way,  but  as  if  it  were  a  pleasure  to  cooperate 
with  the  distributers.  The  salesman  was  not  ignored;  the  aim 
was  to  develop  a  spirit  of  team  work — to  convince  the  salesman 
and  the  dealer  that  the  best  scores  could  be  made  by  working 
together — cooperating — playing  the  "inside  game." 

In  two  years  the  business  was  doubled  The  increase  in 
sales  was  attributed  to  the  new  attitude — Ireeping  in  touch  with 
the  dealers  by  letters,  following  them  up  between  the  calls  of  the 
salesmen,  maintaining  a  point  of  contact  at  all  times. 

Such  a  relationship  is  the  most  effective  barrier  against  com- 
petition and  makes  the  dealer  feel  that  a  house  has  an  interest 
in  him  beyond  the  filling  of  the  next  order. 

Progressive  manufacturers  and  wholesalers  are  learning  that 
mutual  good  will  and  a  spirit  of  cooperation  are  vital  factors  in 
trade-building  and  dividend-papng,  and  the  letter  is  the  natural 
medium  for  keeping  the  house  in  close  touch  with  customers. 

The  letter  serves  more  than  one  good  end;  it  promotes 
closer  relations;  it  keeps  the  house  and  its  line  before  the  dealer: 


LETTERS  THAT  CARRY  INTEREST 


it  guards  against  the  vest-pocket  rule  of  salesmen;  it  holds  trade 
for  salesmen  and  gets  advice  on  policies,  methods  and  plans. 

The  effectiveness  of  the  letters  sent  out  by  a  house  depends 
largely  upon  an  accurate  knowledge  of  the  customer  and  condi- 
tions in  his  territory.  Nothing  deflects  a  customer's  interest 
more  quickly  than  a  letter  betraying  ignorance  of  past  transac- 
tions or  his  relations  with  the  house.  Just  as  truly,  the  subtle 
flattery  of  a  letter  showing  an  intimate  knowledge  of  a  customer 
and  manifesting  a  genuine  interest  in  his  welfare  tightens  the 
bonds  that  hold  him  to  the  house. 

The  letters  need  not  be  individual  in  all  cases.  Announce- 
ments of  changes  in  prices,  the  addition  of  new  lines,  and  general 
trade  news  is  sent  to  ail  the  customers,  but  the  clever  correspond- 
ent tries  to  get  away  from  stilted  formality,  making  the  recipi- 
ent feel  that  he  is  one  whom  the  house  never  loses  sight  of  when 
it  has  information  that  may  be  of  interest.  The  form  letter  may 
be  used,  also,  in  educational  work,  pointing  out  the  advantages 
of  certain  goods,  and  suggesting  trade-getting  schemes.  A 
wholesale  paper-house  writes  to  all  its  customers  at  least  once 
a  month,  calling  attention  to  some  line  of  paper  which  is 
especially  adapted   for  a  certain  Hne  of  work: 


Dear  Sir- 

The  next  man  who  comes  in  and  wants  some  stationery 
that  is  a  little  out  of  the  ordinary,  a  little  better  than  the 
other  fellow's,  show  him  the  enclosed  samples  of  Quaker  Bond. 

We  don't  claim  this  is  the  best  bond  made:  we  do  claim 
you  can't  equal  it  at  the  price.  Then.  too.  the  new  Vellum  finish 
gives  a  tone  of  quality  that  will  give  distinction  to  a  letter- 
head or  envelope.  We  enclose  samples  of  white,  opaline,  azure 
and  rusaet.   Envelopes  are  carried  In  stock  in  these  colors  in 
6i   and  Baroni&l  sizes 

Many  printers  are  using  Quaker  Bond  for  their  own 
stationery  and  they  find  it  most  effective  advertising   Let  us 
know  what  you  think  of  it. 

Very  sincerely  yours, 

THE  CEilTEAl  PAPEH  CO. 

By     3-^   (i?  h/.SLc — ^ 

UDW/LK  ligr.    Country  Icpt. 


74  MAKING  GOOD  USE  OF  TESTIMONIALS 

Such  a  letter  is  primarily  a  form  of  advertising,  yet  it  is  cer- 
tain to  be  read,  for  the  artistically  printed  samples  give  valua- 
ble suggestions. 

—  Another  house  sends  out  every  month  a  bulletin  of  special 
bargains — broken  lines,  job  lots  and  odd  sizes  on  which  special 
prices  are  quoted.  This  bulletin  not  only  enables  the  house 
to  get  rid  of  its  accumulation  of  odds  and  ends,  but  it  carries 
with  it  a  letter,  calling  attention  to  these  special  prices  to  the 
"'regular  customers,"  affording  them  the  same  opportunities 
for  "close  buying"  as  if  they  were  in  the  city. 

If  a  letter  serves  no  other  purpose,  it  is  worth  its  cost  in  keep- 
ing the  name  of  the  house  and  its  goods  before  the  trade.  A 
coffee  house  in  Chicago  attributes  its  great  success  largely  to  the 
way  it  recognizes  orders.  Even  the  smallest  order  calls  forth  a 
letter  thanking  the  sender  for  remembering  the  house: 


"Your  'business  is  important  to  us;  we  are  just  as  glad 
of  this  order  as  if  it  were  from  our  largest  city  customer  for  it 
shows  that  you  like  our  coffee  and  find  our  service  satisfac- 
tory. A  dozen  small  orders  mean  more  to  us  than  one  large  order 
for  they  mean  that  twelve  dealers  are  creating  a  demand  for  our 
trands,  a  demand  that  will  increase.   This  means  that  your 
businece  will  grow  and  then  our  husiness  will  grow. " 


Such  a  message  puts  the  small  dealer  in  the  right  attitude; 
makes  him  feel  that  his  orders  are  really  appreciated. 

Another  concern  keeps  its  name  and  goods  before  customers 
by  testimonial  letters  sent  out  at  regular  intervals: 


"0.  L.  Kason  at  CanJral  City  put  In  the  Union  line  l»3t 
Kay;  every  montli  since  then  hie  orders  have  been  larger." 


"SiaitlL.&  Smith  of  Cedar  Creek  added  the  Union  line  a 
year  ago^  Last  week  they  wrote  ui):  'Our  sales  on  canned  goods 
have  more  t^an  doubled  since  wo  began  handling  your  products. •" 


"The  Vittb.  ATenue  Crooer  at  Vilson  Harbor  writes: 
*Union  canned  goods  ffell  themseJ.vea.  Send  us  enclosed  order  at 
once.  Thought  we  had  enough  to  last  ub  until  your  man  Butler  got 
around  next  month,  but  our  stock  la  already  running  low. • ' 


'TEAM  WORK"  WITH  THE  SALESI^UN 


75 


These  letters  contain  a  little  folder  describing  the  Union 
goods,  but  that  is  all.  Not  a  word  is  written  about  buying; 
but  the  letters  keep  the  line  before  the  dealers,  and  by  show- 
ing what  other  merchants  are  doing  they  make  it  easier  for  the 
salesmen  to  close  an  order. 

The  aim  of  the  successful  correspondent  is  to  seize  upon  every 
opportunity  to  write  to  the  customer  and  show  an  interest  in 
his   business.     Getting   orders   is   a  secondary   consideration. 


JAN           FEB 
NAI.1C 

MAn.         APR.         MAY         JUNE 

JULY        AUC        SEPT        OCT          NOV 
12     13    14    IS  ie    17    IS  19  ?0  21  22  23  2 

DEC. 
4  23  2«  2 

^ 

12346670*     10    1 

28  29  00  31 

AOOnfFB 

LOCATION    NO. 

SiOE 

ACE 

OCTWCEN 

AND 

PBOIiPCCT 

OWNER 

ODDBEfS 

IKTEBCertO 

TENANT 

CONNECTED 

RCMArns 

BUSINESS. .rcOM»E«C,.L. 

COMEBTiC 

OSIKG  rO.1  LIGHT 

STVLE  OF  FIXTURES 

DATE 

winEb 

PIPEO 

MATERIAL 

IS  USING  ELECTBiciTv  ron  cat 

Sir.E  LIGHTING, 

DATE 

COULD  USE  eLECTBIClTV  FOS 

MATERIAL 

REMARKS 

DATE  or  THIS  REPORT 

Specimen  cards  used  for  mailing  lists.  The  upper  card  is  filled  ovi  by  a 
salesman  and  sent  in  to  tlie  house  for  filing.  The  lower  card  gives  tlm 
data  required  by  an  electric  ligfding  company,  and  enables  tJie  corres- 
pondent to  send  oxd  letters  and  advertising  viatter  aimed  directly  at  the 
needs  of  each  prospect.  The  small  signal  at  tlie  top  of  the  card  sliows 
the  date  for  sending  out  the  next  follow-up 


First  of  all,  get  in  close  touch,  establish  a  point  of  contact  and 
the  orders  will  take  care  of  themselves. 

Soliciting  business  may,  however,  be  the  very  best 
method  in  which  to  show  a  genuine  interest  in  the  dealer, 
as,  when  the  wholesaler  advises  him  of  an  advance  in  prices 
at  a  certain  time  and  suggests  that  orders  be  placed  before 
that  date. 

Where  the  house  keeps  in  touch  with  the  dealer  in  this  way 
there  is  little  danger  of  the  salesman's  getting  such  a  hold  on  the 


76  WINNING  THE  DEALER'S  COOPERATION 

trade  that  it  is  hb  to  carry  to  a  rival  firm  if  he  so  desires.  The 
cost  of  the  letters  that  establish  and  maintain  this  point  of 
contact  may  be  charged  up  to  insurance  on  future  business. 

If  a  complaint  comes  in  it  may  be  turned  over  to  the 
salesman  to  adjust.  At  the  same  time,  letters  to  the  cus- 
tomer make  it  plain  that  the  salesman  is  acting  under 
instructions  from  the  house  and  is  merely  carrying  out  the  policy 
of  the  house  in  settling  the  claim.  If  a  large  order  is  given  a 
salesman  the  house  writes  and  thanks  the  customer — deftly  the 
impression  is  carried  that  the  order  was  not  given  to  the  sales* 
man,  but  to  the  house  throvgh  the  salesman. 

The  attitude  is  taken  that  salesmen  are  not  sent  out  to  get 
business  and  to  stock  up  the  dealer,  but  rather  to  assist  the 
dealer  in  selecting  lines  best  suited  for  his  trade,  making  it  eas- 
ier for  him  to  place  his  orders. 

This  does  not  mean  that  the  salesman  is  restricted  in  his 
work — it  merely  applies  to  the  attitude  towards  the  dealer. 
In  fact,  there  is  no  greater  function  of  the  house-letter  than  to 
prepare  the  dealers  for^  the  salesman's  coming  and  persuade 
them  to  hold  their  orders  for  him.  Letters  between  calls  supple- 
ment the  canvass  of  the  salesman,  bring  out  new  features  and 
give  the  retailer  opportunity  to  consider  a  proposition  more 
fully.  This  is  most  necessary  in  introducing  a  new  line  and  in 
educating  the  trade  to  better  grades.  This  letter  was  sent 
to  awaken  an  interest  in  advance  of  the  salesman's  call: 


Dear  Sir: 

You  have  teen  dealing  in  building  materials  long  enough 
to  know  what  the  roofing  problems  are  to  architects  and  con- 
tractors. 

Shingles,  tiling,  patent  roof ing3--doubtlea8  you  havo 
handled  them  all.   This  is  all  the  more  reason  T7hy  you  will  be 
interested  in  the  sample  of  Reaisto  concrete  roofing  that  wo  are 
sending  you. 

Here  is  a  concrete  shingle  that  is  light  enough  in 
weight  to  be  practical  yet  strong  enough  to  defy  sun,  rain  and 
wind   Concrete  is  the  only  material  that  Improves  by  exposure 
<to  the  weather;  the  only  material  that  is  absolutely  indea- 
troctible  by  fire. 

Reaisto  shingles  need  no  repairs,  no  painting   The. 
(first  cost  is  the  only  cost. 


MAKING  LOYALTY  AN  ASSET  77 


Our  Ur.   Bates  will  t'e  in  Eelsey  next  week  to  tell  you 
more  atout  the  Resisto  and  to  talk  to  any  builders  whom  you 
think  might  be  interested.  Meanwhile,  we  suggest  that  you  soak 
this  sample  Resisto  in  a  pail  of  water,  put  it  in  the  fire 
and  subject  it  to  any  other  test  you  can  think  of  just  to  con- 
vince yourself  of  its  Indestructibility.   Then  we'd  be  glad  to 
have  you  tell  us  what  you  think  of  it  and  got  expressions  from 
the  contractors. 

Very  truly, 

WLK/TR.  THE  RESISTO  SHINGLE  MFG.   CO. 


Here  is  a  letter  that  brings  the  dealer  and  the  wholesaler 
together  on  common  ground,  at  the  same  time  paving  the  way 
for  the  salesman.  In  this  particular  case  few  sales  were  made 
the  first  trip  because  the  product  was  so  new  that  dealers  were 
slow  to  tie  up  any  money  in  it,  but  the  salesman  reported  fully 
to  the  house  just  what  objections  each  dealer  made,  what  excuses 
he  offered  for  not  buying,  and  tliese  specific  reports  enabled 
the  correspondence  department  to  carry  ori  a  regular  course  of 
instruction  by  mail,  and  by  the  time  the  second  trip  was  made 
the  majority  of  the  dealers  placed  orders. 

Many  houses  urge  their  customers  to  send  rush  orders  direct 
instead  of  waiting  for  the  salesman,  and  as  the  salesmen  are 
given  credit  for  such  sales,  they  encourage  it.  In  this  way  the 
dealer  gets  in  the  habit  of  placing  at  least  a  portion  of  his  busi- 
ness direct,  and  this  naturally  brings  him  a  little  closer  to  his 
source  of  supplies. 

There  is  no  surer  way  to  get  a  man  interested  in  your  house 
and  your  policies  and  your  goods  than  to  ask  him  for  his  opinion 
about  them  and  ask  for  advice  about  improving  your  service. 
It  is  human  nature  to  feel  flattered  when  our  advice  is  asked  and 
the  correspondent  approaches  100  per  cent  efficiency  who  makes 
a  distant  customer  feel  that  his  views  are  of  enough  importance 
to  the  house  to  be  considered  in  determining  its  future  policies. 

The  house  must  maintain  a  point  of  contact  with  its  customers 
and  the  letter  performs  this  service  easily  and  economically. 
It  not  only  guards  against  the  "vest-pocket"  rule  of  sales- 
men, but  it  has  a  constructive  function  as  well  in  creating  a 
spirit  of  actual  cooperation,  giving  the  house  the  benefit  of 
customers'  ideas  and  suggestions — it  becomes  a  magnet  in  draw- 
ing future  orders. 


Cooperating  With  the  Dealer 

In  Campaign  On  Consumers 

PART  XIII        USING  LETTERS  ON  THE  DEALER  TRADE    CHAPTER  58 

THE  MANUFACTURER  who  is  satisfied  when 
he  makes  a  sale  to  the  retailer  is  not  getting  the 
most  out  of  his  field.  By  Intensive  Cultivation 
his  sales  can  he  multiplied  many-fold — by  cooper- 
ating with  the  dealer  in  the  development  of  the  re- 
tail trade,  for  re-orders  ivill  not  come  in  until  the 
merchant  disposes  of  his  stock.  Getting  the  dealer 
enthused  over  your  goods  is  the  first  thing  that  can  be 
done  by  letter;  then  he  can  be  coached  in  methods  of 
pushing  sales  by  bringing  more  people  to  his  store 
and  CREATING  A  DESIHE  for  this  pariicidar  product 
or  brand.  This  chapter  takes  up  specific  ways  of 
interesting  the  dealer  and  his  clerks  and  getting 
their  cooperation  by  showing  how  it  is  to  their 
advantage  to  push  the  sales 

ARKETING  goods  through  dealers  does  not  end 
with  the  filling  of  orders.  The  manufacturer  or 
wholesaler  who  stops  there,  depending  upon  the 
dealer  to  turn  over  the  goods  without  any  selling  assistance, 
b  likely  to  find,  at  the  close  of  the  season,  that  his  sales  have 
been  discouragingly  small. 

As  a  distributer,  a  dealer  is  likely  to  hand  a  product  over 
the  counter  when  customers  ask  for  it — and  no  faster.  He  sells 
goods  for  the  profit  and  if  the  profit  on  some  article  or  brand  is 
large,  he  may  use  special  means  of  pushing  the  sales;  he  may 
advertise  the  goods,  or  call  attention  to  them  by  attractive 

78 


NEED  OF  APPLYING  SPUR  TO  DEALER  79 

store  and  winjiow  displays.  If  the  profit  is  slightly  less  than 
on  a  similar  product,  and  the  demand  is  not  specific,  he  is 
naturally  prompted  to  keep  it  in  the  background  and  to  push 
the  brand  that  ^Vcs  him  better  returns. 

It  is  obviously^  an  advantage,  therefore,  to  watch  the  sale 
of  your  product  after  the  dealer's  order  iias  been  filled  and  the 
goods  are  on  his  shelves.  If  the  goods  Daove  slowly,  and  the 
dealer  is  inclined  to  let  them  "sell  themselves,*  the  manu- 
facturer cannot  afford  to  stand  idly  by  and  let  them  grow  stale 
under  the  counter.  Yet  such  a  condition  offers  a  big  opportunity 
to  step  into  the  selling  field  and  create  a  demand,  and  to  show 
the  dealer  that  your  product  is  a  profitable  line  to  handle.  It 
offers  you  an  opening  to  show  your  interest  beyond  the  s^le. 
The  average  dealer  needs  a  cooperative  spur.  He  may  be 
indifferent;  likely  he  would  not  know  the  best  way  to  speed  up 
sales  on  a  particular  commodity,  even  if  he  wanted  to. 

While  the  amount  of  goods  he  can  handle  depends  largely 
upon  the  size  of  the  community  and  the  character  of  his  trade, 
an  educational  campaign  on  the  quality  or  adaptability  of  your 
goods  will  create  additiorial  interest  from ,  consumers  and  the 
selling  limit  can  be  raised  to  a  gratifying  figure. 

You  might  advertise  through  magazines,  newspapers,  or 
other  mediums;  you  might  arrange  attractive  displays  for  the 
dealer,  or  send  a  sales-force  into  his  territory  to  talk  your  goods 
and  send  more  buyers  to  his  store.  These  methods  are  in  suc- 
cessful use,  but  more  practical  by  far  is  the  plan  of  writing 
letters  to  customers  whose  names  the  dealer  furnishes,  or 
sending  letters,  catalogues  and  circuliars  to  consumers  gen- 
erally in  the  retailer's  territory — securing  the  names  in  the  usual 
"list  gathering"  methods. 

A  letter  campaign  is  •  usually  the  least  expensive  plan  of 
reaching  the  consumers,  and  it  is  adaptable  to  any  line.  There 
are  three  different  channels  through  which  this  advertising  may 
reach  consumers: 

It  may  b6  mailed  direct  from  the  house,  backing  up  the 
offer  of  goods  with  manufacturer's  or  wholesaler's  guarantee. 
The  letters  and  circulars  may  be  sent  direct  from  the  house,' 
although  written  on  the  dealer's  stationery,  over  his  signature. 
The  advertising  may  be  sent  out  by  the  dealer  direct; 
the  house  supplying  him  with  all  the  "literature"  necessary  for 
the  campaign,  prepared  on  his  personal  stationery. 


80  GETTING  THE  DEALER'S  INFLUENCE 

To  begin  with,  you  must  be  sure  that  the  dealer  will  do  his 
part,  but  it  is  usually  easy  to  secure  his  interest  for  he  has 
nothing  to  lose  and  everything  to  gain. 

The  greater  the  dealer's  interest,  the  greater  will  be  the 
success  of  the  campaign.  Even  though  the  letters  fail  to  bring 
big  results,  the  active  interest  of  the  dealer,  and  his  redoubled 
efforts  to  push  the  goods,  will  sell  them.  It  lies  in  the  dealer's 
power  very  largely  to  decide  what  goods  shall  be  pushed  and 
if  he  has  the  confidence  of  his  customers  he  can  almost  always 
substitute  for  an  advertised  or  trade-marked  line  if  he  wants 
to — this  is  especially  true  in  food  products,  where  the  buyer 
depends  almost  entirely  upon  the  word  of  the  grocer  as  to  the 
best  quality  in  goods.  If  the  dealer's  cooperation  can  be  se- 
cured, the  success  of  the  campaign  is  assured,  .o  the  aim  of  a 
letter  campaign  is  not  alone  to  increase  the  consuu.crs  interest, 
but  to  stimulate  the  dealer's  activity  in  selling  your  goods. 

In  the  letter  campaign,  it  is  not  necessary  to  introduce  sales- 
manship but  merely  to  create  desire — the  dealer  can  be  depended 
upon  to  make  the  sale  after  you  get  the  interested  prospect  into 
his  store.  Impress  upon  the  prospect  that  he  is  not  expected  to 
buy;  that  you  merely  want  to  acquaint  him  with  your  goods  so 
that  when  he  is  in  the  market  he  will  know  more  about  qualities 
and  values.     Here  is  the  letter  from  a  clothing  manufacturer: 


"Ha^e  you  ever  worn  a  custom  tailored  Bult--do,  you 
know  that  it  can  te   made  to  drape  and  fit  exactly  as  though  it 
were  cut  end  fitted  ty  your  local  tailor? 

"John  Black  has  a  complete  line  of  sample3--and  be  la 
wearing  one  of  our  suite.  Stop  in  at  his  place  and  see  what  you 
think  of  It.  You  needn't  order--you  may  not  be  ready  to  huy 
That  Isn't  the  point.  All  we  want  you  to  do  is  to  examine  these 
goods,  see  the  kind  of  fit  we  can  give  you  and  learn  how  much 
Kood,  hard  casb  we  can  save  you. " 

And  to  make  it  as  easy  as  possible  for  him  to  visit  the  local 
dealer,  give  specific  directions: 

"llr.  Blank  is  our  repre3entativ0--you  know  where  he  is. 
Just  two  doors  west  of  the  post  office  on  First  street.   He  has  a 
machir©  in  operation  and  will  take  pleasure  in  showing  It  to  you 
even  thouKh  you  are  not  in  the  market  Just  at  this  time." 


DIRECTING  CUSTOMERS  TO  THE  DEALER  «1 

It  is  an  effective  scheme  to  offer  him  some  special  induce- 
ment to  visit  your  dealer.    This  Is  how  one  wholesaler  did  it: 

"xno  first  one  hundred  poroona  buying  fifty  eronts^worth 
of  the  Wilson  silka  will  bo  given  a  protty  embroidery  ^BJttem 
free.  Tieee  are  handsome  patterns  and  you  had  better  BfiJce  it  a 
point  to  eo-lnto  Brovm'o  atore  this  afternoon  and  ooo  If  you 
don't  want  one--PHiC3,  " 

And  in  the  same  letter  that  you  direct  th6  pmspective  buyer 
to  the  dealer's  store,  you  brand  the  distinguishing  feature  of 
your  product  on  his  mind  by  using  phrases  of  this  kind: 


"Our  gannenta  are  shrunk  one  hundred  per  cent.  Ts 
gvarantee  it.  " 

"This  pen  will  not  leal:--cannot  leak.   Couldn't  get 
your  fingers  soiled  if  you  tried  to.   Come  In  and  we  will  prove 
it  to  you. ■ 

"This  is  ntade  of  aluminum  and  cannot  be  broken,  making 
It  more  aerviceable  than  any  other  attachment  of  the  kind  on 
the  market."" 


Then  when  the  prospective  buyer  goes  to  the  store,  he  will 
ask  to  see  that  particular  product  and  no  other. 

The  manufacturer-consumer  letter,  to  be  effective,  should 
go  fuilher,  and  take  up  the  sahent  points  that  make  the  article 
desirable  or  adaptable  to  the  user's  needs.  It  must  point  out 
to  him  the  reasons  why  it  is  adapted  to  his  wants  by  embodying 
the  interest-creating  features  of  the  good  sales-letter,  although 
leading  up  to  a  "call"  instead  of  a  "sale." 

A  wholesale  baker  used  letters  effectively  on  names  fur- 
nished by  the  retailers.     Here  is  the  first  letter  in  a  campaign: 


Dear  Uadam: 

Years  ago,  when  your  great-great-grandmother  knitted 
the  children's  hosiery,  made  all  the  shirto,  nearly  all  th> 
clothing  and  many  of  the  household  necessities,  she  did  it  be- 
cause there  was  no  other  way  to  ge^  them.  You  don't  do  It  today 
for  the  reason  that  you  can  buy  a  better  "ready-to-wear"  artlol* 
Cheaper  than- you  can  fflalM  it. 


8^ FOUR  FUNCTIONS  OF  A  LETTER 

The  eame   holds  true  with  braad.   Our  grandmothers  wer« 
famous  h re ad  makers — prize  winners   But  they  worked  hard  and 
had  few  of  the  comforts  of  today   Eoro.  ecienco.  skill,  machinery 
and  pure  food  laws,  together  with  expert  workmen  and  high  grade 
flour,  have  produced  wonders  In  hread  making.   They  have  made  it 
posslhla  for  you  to  buy  bread  cheaper  than  you  can  make  it   You 
can  saTO  your  atrength,  your  tlme--and  money. 

Brown  &  Co  brands — Perfection.  Butternut  Pioneer  and 
Spoolal--are  the  appetizing  results  of  long  and  progressive 
bread  mstking  the  cleanest  of  workrooms,  the  latest  machinery, 
large  autoiratio  ovens  and  equipment  that  allows  the  lowest  cost 
In  tha  making,  and  consequently  the  lowest  cost  to  you. 

If  you  buy  broad,  instead  of  makinff  it,  you  want  only  the 
best  —  it  costs  no  more  than  the  other  kinds   A  trial  «ill  con- 
vince you  that  oura  is  tha  best   Call  up  tha  Fourth  Avenue  Groc- 
ery, which  sells  our  brands  and  have  aomo  daXlvered — do  it  irhen 
you  order  your  groceries  tomorrow 


Very  truly  youre. 


If  the  dealer  reminds  Mrs  Smith,  when  ordering  sugar  and 
potatoes  of  Blank  &  Co.'s  breads,  aad  suggests  sending  a  few 
loaves,  the  sales  are  bound  to  increase  rapidly.  Here  is  where 
there  should  be  good  team  work  between  the  wholesaler  and  the 
dealer^  cooperation  should  be  active  and  consistent. 

On  some  Unes,  such  as  specialties  or  new  products,  the  propo* 
sitioa  is  not  so  simple,  for  the  educational  work  takes  much 
longer.  The  letter,  in  such  cases,  should  have  four  specific 
purposes:  picking  up  prospects,  educating  them,  creating  a 
desire  to  possess  the  article  or  goods,  and  turning  the  prospects 
over  to  the  dealer  to  "close." 

If  the  list  is  a  selected  one,  such  as  inquiries  secured  through 
magazine  advertising,  these  purposes  are  more  readily  accom- 
plished as  the  prospect  is  already  interested  to  a  degree.  But 
the  aim  is  always  the  same:  stimulate  the  interest  and  get 
the  prospect  into  the  store. 

Even  where  the  letter  has  created  a  desire  for  the  goods 
its  force  may  be  wasted  unless  it  impresses  the  name  of  the  dealer 
upon  the  mind  of  the  reader.  Make  the  name  stand  out  prom- 
inently near  the  close  of  the  letter.  Some  houses  accomplish 
this  by  a  sentence  of  this  kind:  "Mr.  Jones,  212  Main  Street, 
handles  our  line — ^you  can  easily  reach  him  and  he  will  be 


LETTERS  ON  DEALER'S  STATIONERY       8* 


glad  to  tell  you  further  details  and  show  you  the  goods."  Or, 
lor  simplicity,  they  merely  write  the  dealer's  name  and  street 
(address  at  the  bottom  of  the  page;  Others  have  clever  schemes 
by  which  to  impress  the  name  of  the  dealer  and  his  address 
upon  the'  minds-  of  the  inquirers.  For  example,  a  clothing 
manufacturer  encloses  with  his  letter  an  attractively  en- 
graved card,  which  reads:  "This  will  introduce  you  to  our 
dealer  in  your  city,  who  will  be  very  glad  to  show  you  our 
latest  line  of  exclusive  fashion  ideas.  Should  you  decide  to 
order  any  clothes  through  him,  you  can  rest  assured  that  your 
o»der  will  receive  our  most  painstaking  attention."  At  the  top 
of  this  card  is  a  space  where  the  inquirer's  name  is  filled  in  and 
another  space,  surrounded  by  a  heavy  border,  where  the  dealer's 
name  and  address  is  typewritten  so  it  stands  out  conspicuously. 

If  the  dealer  is  well  known  in  his  locality  and  has  consider- 
able prestige,  letters  sent  out  over  his  signature  and  on  his  per- 
sonal stationery  are  sure  to  give  more  confidence  to  buyers.  It 
accomplishes  all  the  purposes  of  the  manufacturer's  letter,  and 
is  usually  more  effective,  because  the  retailer  is  known  personally 
to  the  recipient.  So  the  house  writes  the  letter  from  the  dealer's 
attitude,  adding  here  and  there  a  touch  of  local  color.  Then 
tlie  mailing  is  sent  out  direct  from  the  house  or  turned  over 
to  the  dealer,  so  that  the  letters  may  have  a  local  postmark. 

Take  the  grocer,  for  example.  A  personal  letter  from  him 
to  consumers  in  his  locality,  whether  to  his  customers  or  those 
of  his  competitor,  always  carries  weight.  Here  is  a  letter  from 
a  manufacturer  that  is  written  at  the  house  but  bearing  all  the 
earmarks  of  a  personal  letter  from  the  dealer.  It  aims  to  get  the 
buyer  to  the  dealer's  store  by  two  distinct  methods — the  special 
advantages  of  the  goods  and  by  the  assurance  that  they  can 
only  be  obtained  from  the  one  grocer  in  that  locality: 


Dear  Uadam: 

There  la  no  need  of  your  tioillng.  broiling,  baking  and 
atewlng  In  aa  overheated  kitchen  If  you  have  BVBR-READY  meats  in 
your  pantry.  They  need  no  cooking  and  are  always  ready  to  serve, 
hot  or  oold,  in  a  hundred  appetizing  ways. 

BVBR-READY  meats  could  not  be  more  savory  or  delicious 
If  prepared  in  your  own  kitchen.  The  government  inspection 
makes  you  sure  of  their  purity.  Every  week  an  increasing  number 


84  INSPIRING  CUSTOMERS  CONFIDENCE 

of  custonera  ars  using  theas  prepered  ireata.  for  t.hpy  are  cnn- 
venlent;  thoy  are  always  ready  to  serve,  thpy  are  unexcellsd 
In  quality. 

Do  not  take  our  word  for  it   Try  them  anl  -Re.   one 
trill  will  show  you  why  your  nelijhbors  are  so  ent  hu  3  i  as  t  It-  o^er 
FVER-RSADY  naata   This  store  alone  handles  this  t-and  and  I 
hope  the  next  time  "ou  are  In  this  vicinity  you  will  drop  In  and 
easiple  some  of  them  and  take  home  a  can. 

Very  truly  youra. 


A  letter  of  this  kind — the  dealer's  personal  letter — may  be 
used  advantageously  to  couple  up  with  the  manufacturer's  answer 
to  an  inquiry,  the  manufacturer  sending  out  both  letters;  the 
dealer'3  personal  letter  going  out  a  few  days  after  his  own. 
The  prospect  gets  the  impression  that  his  inquiry  has  received 
double  attention.  Often  to  gain  an  approach  for  the  dealer's 
personal  letter,  a  direct  reference  is  made  to  the  inquiry: 


Bsar  Sii 

Brown  &  Cozipany  have  written  us  about  ycur  inquiry  and, 
Hiougil  you  havo  probably  received  a  cataloeue  and  other  deacrlp- 
tivs  natter  direct  fron  theai,  we  want  to  invite  you  10  call  at 
our  etore  where  you  can  see  the  Wellington  cachinn  in  actual  op- 
eration.  It  will  be  a  pleasure  to  talk  with  you  personally  and 
explain  any  of  '.aa   features  that  may  not  be  perfectly  clear 
to  you. 

Very  respectfully. 


In  case  these  dealer's  personal  letters  are  sent  out  from  the 
local  territory,  the  dealer  must  have  a  list  of  the  inquirers 
so  he  can  couple  up  the  two  letters.  One  nianufacturer  uses  a 
simple  device  for  accomplishing  this.  The  dealer  is  first  sup- 
plied with  coupling-up  letters,  then  with  the  manufacturer's 
reply  to  an  inquiiy,  is  sent  a  slip  bearing  the  name  and  address 
of  the  local  dealer.  At  the  top  13  tlic  name  of  the  inquirer. 
These  slips  are  duplicat<xl  to  the  dealer,  who  mails  the  coupling- 
up  letters  to  the  addresses  given  on  the  inquirers*  cards. 


HOW  TO  SECURE  GOOD  LISTS  85 

Since  all  letters  mailed  by  the  manufacturer  are  more  effective 
if  sent  to  a  selected  list,  the  dealer  is  at  all  times  encouraged 
to  send  in  names  of  his  customers,  names  of  his  competitor's 
customers,  or  names  of  special  prospects. 

One  manufacturer  asks  the  dealer  to  send  him  any  local 
lists  of  buyers  obtainable,  such  as  telephone  or  city  directories 
or  association  memberships,  A  baking  powder  house  supplies 
the  dealers  with  books  of  cooking  receipts  which  the  dealer 
gives  out  to  persons  who  call  at  his  store,  and  leave  their  names 
and  addresses.    These  are  then  sent  in  to  the  manufacturer. 

One  manufacturer  of  stoves  secures  from  the  dealer  the 
names  of  all  f>ersons  who  are  known  to  be  in  the  market.  Then 
a  letter  is  sent  out  from  the  house  to  the  prospect,  taking  up  the 
arguments  in  favor  of  this  particular  stove: 


Doar  Sir: 

Befora  you  purchase  that  re^  range  you  should  take  tine 
to  Inveetieate  the  merits  of  the  Opal  stovee. 

The  true  test  of  any  atove  is  In  Its  use.  When  new.  one 
Btovs  looks  a  good  deal  like  another,  and  it  is  only  by  actual  . 
eervice  that  the  real  Talue  le  shown.  Our  clcin  for  merit  In  the 
Opal  range  is  warranted  "by  the  years  of  satisfactory  service  It 
has  given  to  thousands  of  uoern.   Only  the  highest  grade  of  ma- 
terials and  the  most  skilled  vyorkiiien  are  employed  in  its  con- 
struction.  All  steel  is  extra  quality,  highly  polished  and  re- 
quires no  blacking.   All  cast  parts  are  made  of  the  highest  g.-ade 
oast  iron  obtainable   The  fire  boxes  are  made  large  and  roocy 
and  are  correctly  proportioned  to  hold  fire  for  a  long  ttiae.  Ths 
ovens  are  full  size,  lade  square,  and  will  bake  quicker,  more 
evenly  and  with  less  fuel  than  the  ovens  in  other  stoires. 

But  we  cannot  tell  you  even  briefly  all  the  good  points 
about  the  Opal,  so  we  want  you  to  call  at  Samuel  Smith  s  store 
et  428  Center  avenue,  look  the  Opal  over  carefully  and  aee  it 
taken  apart  so  you  will  understand  the  reasons  that  have 
prompted  thousands  of  householders  to  buy  the  Opal  in  prefer- 
ence to  all  other  ranges. 

Very  truly  yours, 

OPAL  STOVE  UANUFACTURirrC}  CO. 

By  <^i4^,..^/2^^.^ 

Ugr.  of  Sales. 


86  CONTESTS  TO  GET  NAMES  OF  PROSPECTS 

Another  manufacturer  gets  out  letters  for  his  dealers  when- 
ever they  visit  the  hous^  to  purchase  goods.  These  letters  are 
often  personal  communications  from  the  dealer  to  his  cus- 
tomers, calling  attention  to  new  styles  and  samples  he  secured 
during  his  visit  to  the  city.  They  are  sent  out  from  the  house 
over  the  dealer's  signature  and  are  made  up  in  some  such  form 
as  this: 


Dear  Sir: 

Can't  you  call  around  at  our  store  in  a  fsw  days  and 
loolc  over  the  new  patterns  in  browns  and  fancy  blues  that  I  have 
been  selecting  here  in  the  city?  I  honestly  believe  this  is  the 
finest  line  of  goods  I  have  ever  seen  and  I  knew  you  will  be  en- 
thusiastic over  some  of  them. 

I  am  taking  a  few  of  the  best  patterns  back  with  me  and 
will  be  mighty  glad  to  have  you  drop  in  some  afternoon  and  look 
them  over  before  they  are  placed  on  sale. 

Very  truly  yours. 


A  short,  friendly  note  of  this  kind  carries  great  weight.  It 
is  unusually  effective  where  relations  between  the  dealer  and 
the  customer  permit  the  tone  of  intimacy. 

A  tobacco  manufacturer,  wishing  to  direct  a  campaign  of 
letters,  booklets,  printed  matter  and  samples  for  the  dealer, 
decided,  for  more  effectiveness,  to  secure  a  select  list  first.  To 
secure  this  list,  a  prize  guessing-contest  was  conducted  in  each 
town.  An  attractive  window-display  was  made  in  the  dealer's 
store,  appealing  to  all  classes  of  smokers.  The  only  require- 
ment for  entering  the  contest  was  for  the  smoker  to  leave  his 
name  and  address  in  a  book.  After  the  contest  was  over  and 
the  books  had  been  returned  to  the  manufacturer,  the  campaign 
was  directed  at  the  smokers  whose  names  they  had  secured. 

A  large  wholesaler  adds  to  his  letter  campaign  to  the  dealer*3 
customers  and  prospects,  a  letter  to  the  dealer's  salesmen.  The 
first  step  in  the  campaign  for  dealer-sales  is  to  educate  the 
dealer  to  cooperate  with  him;  the  second  \&  to  induce  him  to 
send  in  the  names  of  possible  prospects  and  also  the 
names  of  his  clerks.      During  the  Campaign  on  consumera 


ENLISTING  THE  HELP  OF  CLERKS  87 

letters  are  mailed  periodically  to  the   clerks    to   secure   their 
active  interest.   Here  is  an  effective  letter  to  clerks: 


Dear  Sir: 

Your  word  usually  nakea  the  sale  to  the  average  f-ua- 
tomer--we  appreciate  this  fact.  We  also  appreciate  how  often 
you  are  called  upon  to  recommend  good  trands,  especially  of 
canned  goods.  If  you  recoimnend  the  heat,  your  customers  will  be 
pleased-'they  will  come  hack  again  and  again--you  will  he  estab- 
lishing a  trade  that  will  make  your  position  stronger--your 
value  to  the  house  greater. 

We  are  writing  to  impress  upon  you  the  fact  that  there 
Is  little  danger  of  your  "making  it  too  strong"  when  talking 
about  the  Lunar  products.  We  raise  our  own  vegetables  and  pack 
them  the  day  they  are  picked;  our  plant  is  tho  largeai.  and  most 
complete  in  the  country;  our  system  of  inspection  is  most  rigid 
--every  facility  that  money  can  buy,  every  precaution  that  sci- 
ence has  proved,  and  an  organization  that  has  made  this  estab- 
lishment known  throughout  the  country--the  result  is  a  line  of 
canned  goods  that  is  not  excelled  In  quality;  a  line  that  you  can 
guarantee  absolutely.  Recommend  them  for  a  week  or  two  to  your 
customers  and  then  watch  them  come  back  for  more  orders. 

Very  truly  yours, 

D.C.L./R.H.  TEE  LUNAR  COMPAUY. 


In  this  way  this  manufcicturer  not  only  educates  prospects 
and  customers  and  keeps  them  trading  at  the  dealer's  store,  but 
he  also  insures  proper  treatment  when  they  call,  by  educational 
work  with  the  clerks.  For  the  cooperation  of  the  clerks  is 
nearly  as  important  as  the   cooperation  of  the  dealer. 

So  when  you  open  the  letter-campaign  that  aims  to  move 
your  product  from  the  dealer's  shelves,  first  show  the  dealer 
that  you  are  working  for  his  interests;  secure  both  his  coopera- 
tion and  that  of  his  clerks  and  then  go  to  the  user  of  the  goods 
to  develop  interest  and  create  a  demand  for  your  product. 


Wielding  the   "BIG  STICK"  in 

Letters  to  Salesmen 

PART  Xm        USING  Li:n  CIIS  ON  THE  DEALER  TRADE     CHAPTER  sq 

WHEN  your  salesman  is  sitting  opj)osite  you  in 
your  office^  it  is  easy  enough  to  ins-pire  him  to 
greater  effort — to  put  *' ginger'*  into  him — by  the 
sound  of  your  voice,  the  glance  oj  your  eye,  the 
slap  on  the  back  or  the  emphatic  thump  on  the 
desk.  But  to  impress  your  personality  upon  him 
when  he  is  on  the  road,  perhaps  buried  in  a  third 
or  fourth  class  town  and  needs  your  encourage- 
inent  most^  is  a  problem  that  resolves  itself  to 
the  Personal  Letter.  Herein  are  extracts  from 
some  sales  managers*  correspondence  with  their 
salesmen — methods  for  keeping  up  the  fighting 
spirit  of  the  men  in  the  field 

THE  sales  manager  who  looks  for  big  results  appreciates 
the  necessity  of  keeping  in  close  touch  with  his  sales 
force,  no  matter  how  widely  it  is  scattered.      To  main- 
tain a  point  of  contact  that  will  carry  a  current  of  enthusiasm 
and    galvanize    the    discouraged    representative,   a  three-fold 
ability  is  required: 

You  must  be  able  to  put  yourself  in  the  salesman's  clothes, 
understand  his  personality  and  see  the  selling  problems  through 
his  eyes. 

You  must  be  able  to  show  him  your  position;  put  him  at  your 
desk  and  make  him  understand  "the  why"  of  house  policies. 

You  must  know  the  territory  in  which  the  salesman  v/orks, 
understand  the  local  conditions  and  the  class  of  customers  hi 
reaches.    Such  knowledge  is  essential  to  an  understanding  oi"  the 

sa 


PUTTING  GINGER  INTO  THE  FIELD  FORCE  8& 

field  problems  and  without  this  understanding  the  sales  manager 
cannot  give  real  help  or  inject  much  enthusiasm 

The  salesman  is  the  human  factor — the  connecting  link 
between  house  and  customer.  His  treatment  of  customers 
should  reflect  the  character  and  policy  of  the  house.  His  attitude 
should  create  the  same  degree  of  confidence  that  you,  as  sales 
manager,  would  create  were  you  able  to  handle  each  customer 
in  person.     This  is  the  ideal  to  hold  up  before  the  sales  force. 

You  aim  to  educate  the  salesman  to  the  importance  and 
responsibility  of  his  position,  to  direct  his  efforts  into  productive 
channels  and  to  keep  him  interested  and  working  at  top  notch 
efficiency.  Except  for  occasional  conventions  or  meetings, 
you  must  rely  upon  letters  to  recharge  his  energies. 

In  order  to  make  these  letters  effective  it  is  necessary  to  knov; 
where  a  salesman  can  be  reached  at  all  times.  This  necessitates 
a  daily  report  by  which  each  man's  route  can  be  followed  by  a 
map  and  tack  system.  Customer  reports  give  data  regarding 
selling  conditions  in  each  territory  and  a  weekly  summary  of 
sales  enables  the  sales  manager  to  keep  his  finger  on  the  business 
and  on  the  v.ork  of  every  man. 

The  experienced  salesman  learns  to  read  between  the  lines 
of  the  salesmen's  reports,  detect  lagging  interest,  determine 
when  they  are  working  from  a  wrong  angle,  interpret  the 
hidden  note  of  discouragement  and  with  letters  charged 
with  enthusiasm  and  helpful  suggestions,  brace  them  up  and 
get  them  going  under  full  headway  again. 

But  these  letters  do  much  more  than  impart  ginger  and 
inspire  confidence.  They  are  frequently  educational  in  the 
strictest  sense  of  the  word.  Various  arguments  are  taken  up, 
and  anecdotes  are  related  showing  how  selling  problems  have 
been  solved,  difficulties  met,  obstacles  overcome.  A  salesman 
may  never  recognize  his  own  weakness  until  he  sees  just  how 
some  other  man  has  been  able  to  increase  his  sales. 

It  is  obvious  that  the  salesman  must  be  supplied  with  price 
changes,  market  reports  and  suggestions  for  handling  emer- 
gency propositions.  !Many  houses  employing  large  forces  of 
salesmen  send  out  house  bulletins,  daily  or  weekly,  instead  of 
letters'  to  give  this  information.  The  bulletin  is  usually  a  email 
pamphlet  made  up  as  attractively  as  possible  without  incurring 
too  great  expense.  It  discusses  house  policies  from  the  view- 
point of  both  house  and  salesman;  takes  up  questions  of  compe- 


90 


EDUCATIONAL  WORK  BY  LETTERS 


tition  and  methods  of  meeting  arguments;  reproduces  sugges- 
tions offered  by  salesmen;  carries  warnings  against  poor  selling 
arguments,  misdirected  energies  and  the  dangers  of  wasting 
valuable  time.  Then  it  outlines  advertising  campaigns  that 
may  be  available  as  selling  arguments. 

Time  after  time  the  brilliant  beginner  falls  down  because 
he  lets  his  own  magnetic  ability  to  take  orders  blind  him  to  the 


The  house  should  keep  in  close  touch  with  its  field  forces  and  this  cliart 

indicates  the  many  ways  in  which  letters  may  be  used  for  gingering  up  tlie 

distant  representatives 


necessity  of  keeping  the  shag  ends  of  his  business  picked  up. 
He  neglects  details,  taking  orders  with  never  a  thought  of  how 
or  when  they  can  be  filled. 

Either  house  bulletins  or  letters  explain  the  mistake  of  this 
attitude  and  suggest  remedies.  A  little  ginger  plus  some  hard 
sense  talk,  puts  the  spur  on  the  jagging  salesman  and  opens 
the  eyes  of  the  man  who  is  easily  discouraged. 

Some  concerns  conduct  educational  letter  campaigns  which 
carry  the  salesman  mentally  through  the  various  departments 


SENDING  SPECIFIC  INSTRUCTIONS  91 

of  the  business.  He  is  shown  operations  in  factory  and  ware- 
house, detaib  of  shipping  and  bilhng  rooms  and  working  sys- 
tems of  the  credit  and  collection  departments. 

Salesmen  must  be  inspired  to  raise  their  efficiency;  they 
must  feel  sure  footed.  Confidence  in  one's  ability  is  the  keynote 
of  success,  and  m  letters  to  salesmen,  hammer  on  thia 
idea  continually:  "You  can  do  anything  any  other  person 
has  done,  if  you  do  what  he  has  done  to  accomplish  it." 

Some  men  are  handled  by  letting  them  alone;  others  are 
handled  by  sympathy;  others  by  analytical  criticism;  others  by 
direct  and  specific  advice.  No  rule  fits  them  all — or  any  two, 
but  every  letter  sent  out  must  be  intended  to  leave  the  man  in  a 
better  frame  of  mind.  It  should  convince  him  that  no  matter 
how  his  disappointments  have  piled  up,  he  is  sure  to  demonstrate 
his  power  if  he  keeps  at  it,  and  does  things  right. 

Giving  the  salesman  some  specific  thing  to  accomplish  often 
gets  results.  For  example,  an  insurance  manager  wrote  an  agent: 


"Go  over  to  So-and-So  and  Insure  him  for  $10,000.  He 
rill  tell  you  that  he  doesn't  want  the  policy,  tut  I  know  he  does.  " 


It  is  often  a  surprise  what  specific  instructions  such  as  these 
will  accomplish  Agents  who  have  been  falling  down  frequently 
regain  their  stride  under  such  a  spur.  The  influence  of  a  strong, 
personality  upon  a  salesman  is  grea  c,  and  the  man  who  has  been 
aimlessly  looking  up  and  down  the  street,  will  apply  himself 
with  new  vigor  if  his  energy  is  properly  directed. 

Many  times  it  is  possible  to  turn  to  account  the  disappoint- 
ments and  discouragements  which  make  men  falter.  If  sales- 
men can  be  made  to  realize  that  the  very  difficulties  of  their 
calling  give  them  their  Uving,  they  will  find  a  new  incentive. 

See  how  this  letter  gives  the  beginner  a  new  outlook : 


"Seme  salesmen  forget  that  the  difficulties  In  the  bus- 
iness are  the  stones  in  the  wall  which  protects  them  in  their 
field  of  labor.  Were  the  business  suddenly  to  become  easy,  a 
thousand  times  p.^   many  men  would  be  rushing  into  it  as  rushed  to 
the  ElondHfe  for  gold.  Were  it  not  difficult,  the  'diggings'  you 
have  staked  out  would  very  soon  be  exhausted.  " 


fiS  NEVER  BELITTLE  A  SALESMA^^S  ABILITY 

"WTien  a  man  thinks  of  his  calling  in  this  h'ght,  he  is  nerved 
to  go  ahead.  There  are  many  such  diplomatic  turns  the  mana- 
ger may  give  to  complaints,  generating  inspirational  advice 
from  the  discourafrement. 

o 

Deprecate  any  complaints  from  men  that  this  "or  that  sales- 
man was  specially  favored  by  circumstances.  Seek  to  impress 
upon  all  that  application,  determination  and  perseverance  will 
accomplish  almost  anything.  Point  out  that  "luck"  really 
undermines  a  man's  strength  and  makes  his  future  success  less 
secure,  even  though  he  m.ay  profit  temporarily.  The  force  of 
such  an  argument  often  nerves  men  on  although  they  had  been 
ready  to  quit  the  struggle 

Follow  the  general  idea  of  this  letter: 


"I  have  come  to  look  upon  it  as  a  pity  that  circuE- 
etances  Bhould  ever  combine  to  place  men  of  much  ability  in  a  po- 
Dition  where  they  are  not  obliged  to  becin  with  a  struggle  for 
existence;  for  most  individuals  ere  so  constituted  that  they  are 
obliged  to  do  so.   The  saving  event  in  many  a  nan's  life  is  the 
tlow  that  takes  away  the  props  thst  have  supported  him  and  leaves 
him  to  look  out  for  himself,  ifany  persons  havo  tcld  me  that  this 
is  true  of  their  own  lives." 


Tlie  men  who  receive  a  letter  like  this,  come  to  look  upon 
"luck"  from  a  new  angle.  The  sales  manager  may  deal  in 
platitudes  and  time-worn  ginger  talks  but  they  are  new  to  the 
young  salesmen  and  help  them  see  their  problems  in  a  broad  way. 

Men  do  not  think  out  these  things  for  themselves  at  first. 
They  must  be  educated.  Take  a  man  out  and  tell  him  to  jump 
over  a  five-foot  hurdle  and  he  will  say  he  can't  do  it.  To  train 
hira  to  jump,  you  give  him  lower  hurdles,  and  raise  them  gradu- 
ally. To  lift  men  by  degrees  into  a  knowledge  of  their  own  powers 
and  the  ability  to  use  them  is  the  aim  of  the  sales  manager. 

Never  discourage  a  man  by  running  down  his  ability.  On 
the  contrary,  tell  him  how  much  he  is  really  capable  of  doing. 
An  example  is  very  valuable  in  getting  men  to  work.  Show 
them  what  other  men  are  doing,  or  have  done,  and  point  out 
that  the  men  who  accomplished  such  marvelous  results  are 
only  like  the  common  run  of  mankind. 

Even  the  best  salesman  out  on  the  road  will  at  times  falter 
and  lose  faith  in  himself  unless  he  is  galvanized  from  the  office. 


AN  ARGUMENT  THAT  APPEALS  TO  FIELD  MEN      93 

The  struggle  is  hard,  and  he  is  away  from  the  inspiring  influences 
of  the  house  and  the  magnetic  touch  of  the  men  who  swing  the 
thing  along.  A  letter  of  fault-finding,  a  "roast"  from  the  home 
office,  a  discourtesy  from  his  manager,  reflects  itself  disastrously. 


Ve&r  Mr.  Cochrane: 

The  correspondence  1  have  Just  had  with  one  of  our 
field  men  working  a  difficult  territory  is  eo  preenant  with 
6U£geBtlon  that  I  am  going  to  pass  it  on  to  you. 

Mr.  Geo.  I..  Brown,  working  the  countlea  of  Winneshiek 
end  Howard,  in  Iowa,  wrote  ne  on  August  eighth  last  that  ho  had 
ahout  decided  to  go  into  the  land  husinesa  aa  he  had  "been  offered 
&  guarantee  of  twenty-five  hundred  dollars  and  expenses  a  year. 

I  wrote  Mr.  Brown  the  tenth  as  follows: 

"To  my  personal  knowledge  we  have  not  a  field  mart 
making  less  than  twenty-five  hundred  dollars  yearly  who  does  not 
fail  to  worJc  regularly  eight  hours  a  day. 

"The  field  man  who  plans  hio  time  and  who  spends  eight 
hours  a  day  out  among  his  prospects  makes  three — f ive--eiKht-- 
ten  thousand  dollars — no  natter  what  the  territory. 

"The  opportunities  are  greater  In  insurance  than  in 
any  other  line  today  for  the  man  who  will  put  in  tha  time.   So, 
before  changing  to  any  other  line,  I  want  you  to  try  the  eight* 
hour-a-day  plan--and  see  how  profits'  foot  up. " 

Fifteen  days  later,  I  was  pleased  to  receive  tne 
following  wire  from  Mr.  Brown: 

"Eeep  my  name  on  the  agency  list.  Have  written  forty' 
two  thousand  dollars  in  two  weeks." 

And--remem'ber :  This  was  the  8$ne  man  in  the  same  ter 
ritory.  He  merely  tried  the  plan  of  working  Eystematically 
eight  full  hours  a  day  in  the  face  of  every  possible  discour- 
agement. 

Uost  cordially, 

Uanager  of  Agencies. 


The  inspirational  letter  is  especially  needed  for  gingering  up  insurance 
solicitors,  and  the  field  force  can  be  greatly  stimulated  by  the  manager  who 
understands  how  to  apply  the  spur  by  letter.     The  above  letter  proved 
unusually  effective  in  holding  men  dovm  to  their  vxrrk 


94         STUDY  THB  WEAKNESS  OF  INDIVIDUALS 

On  the  other  hand,  any  man  worth  having  is  worth  treating 
diplomatically. 

For  example,  here  is  an  idea  that  has  Been  effectively  used: 


"There  Is  a  vast  difference  tietween  a  proper  under- 
standing of  one's  own  aldllty  and  a  deternination  to  make  th» 
■best  of  it,  and  offensive  egotism.   It  is  absolutely  necessary 
for  every  man  to  believe  in  liimaelf  before  ho  can  make  the  moet 
of  himself. " 


To  get  men  to  exercise  their  powers  in  initiative  requires 
pressure  from  above.  The  manager  cannot  sit  in  his  office  and 
expect  his  sales  force  to  keep  up  their  enthusiasm  without  encour- 
agement. 

No  matter  what  the  incident  or  occasion  for  the  letter,  the 
keen  manager  can  turn  it  to  account  by  using  it  as  an  inspiration- 
builder.  If  it  is  patience  the  man  needs,  you  can  give  him  a 
little  talk  that  will  leave  him  in  the  right  frame  of  mind  by 
a  letter  of  this  kind: 


"~        "One  of  the  most  essential  requisites  in  the  accom- 
plishment of  any  really  great  matter  is  patience--not  the  pa- 
tience which  sits  and  folds  its  hands  and  waits,  liacawber-like. 
for  'aomething  to  turn  up,'  but  the  self-control  which  never 
Jeopardizes  or  upsets  a  plan  by  forcing  it  at  the  wrong  moment. 
The  man  who  possesses  that  kind  of  patience  always  finds  plenty 
to  do  in  the  meantime. " 


If  the  man  has  scattered  his  energies,  there  is  splendid 
occasion  for  a  homily  on  concentration. 

The  letter  ought  to  be  the  reflection  of  the  same  influences 
that  exei't  themselves  in  the  office:  to  put  a  hand  on  the  shoulder 
of  a  worker,  or  give  him  a  handclasp,  or  say  things  to  bim  as 
in  person,  and  send  him  away  full  of  enthusiasm  and  determina- 
tion to  work  as  he  never  worked  before — this  is  the  real  func- 
tion of  the  letter  to  the  salesman. 


Salesman 's  Letters  That  Keep 
Up  a  CUSTOMER'S  Interest 

PAKT  XIII        USING  LEITHRS  ON  THE  DI.ALhll    1  KAUb:     CllAriLll  60 

TO  HOLD  a  customer  s  attention  when  the 
salesman  is  face  to  face  with  him  is  a  simple 
matter.  But  to  keep  the  salesman  in  the  CL'S- 
tomer's  mlnd  during  the  intervals  between  calls, 
especially  at  those  times  when  he  is  about  to  place 
orders  for  goods ^  is  a  problem  that  is  solved 
by  the  salesman  s  letters — letters  ranging  from 
hastily-penned  personal  messages  written  from 
various  places  en  route,  to  form  letters  sent 
out  from  the  home  office  over  the  salesman's 
mechanically  reproduced  signature,  lloio  these 
letters  are  'prepared,  and  how  they  are  used  is 
described  in  this  chapter 

CONCERNS    that    depend     upon     the    salesman's    per- 
sonahty  to  make  their  letters  more  eirectivc,  use  one  of 
these  methods  of  producing  them: 
The  salesman's  letter  written  at  his  hotel. 
House  form  letters — sent  to  salesmen  for  signature,  post- 
script and  personal  supervision  in  mailing. 

House  form  letters — mailed  from  the  house  over  the 
salesman's  signature,  applied  mechanically. 

The  salesman's  hotel  written  letter  carries  the  most  intimate 
message,  gets  closest  to  the  customer  and  is  consequently  the 
strongest  in  its  appeal.  It  commands  attention.  It  is  the 
most  adequate  substitute  for  the  personal  call.  It  adds  force 
to  arguments,  because  explanations  may  be  read  and  studied 
over  during  the  customer's  leisure  moments.    It  builds  an  easy 


96         WAYS  OF  EMPHASIZING  SALIENT  FEATURES 

approach  for  a  sale  at  a  later  call  by  keeping  the  proposition 
fresh  in  the  customer's  mind  without  an  appearance  of  too 
much  persistence. 

It  is  usually  advisable  to  leave  an  opening  for  a  follow- 
up  letter  at  the  time  of  the  call.  One  alert  salesman  notes 
on  his  customer's  desk  memorandum  tlie  date  when  he  expects 
to  return,  remarking  as  he  does  so:  "You  may  want  to  reach 
me  before  that  date;  I'll  just  drop  you  a  line  from  time  to  time 
to  keep  in  touch  with  you." 

Thus  the  stage  is  set  for  the  entrance  of  his  letters,  which 
may  deal  with  purely  business  matters,  or  they  may  relate 
wholly  to  matters  of  a  personal  or  private  nature. 

A  week  after  making  the  call,  the  salesman  may  express 
his  reafinterest  in  the  customer  by  writing: 


"In  my  kurry  to  catoh  the  10:46  tha  other  morning  I  may 
net  have  explained  fully  soice  of  the  eelling  features  poseeased 
Cy  our  AAA  Corsets. " 


Then  he  goes  on  and  reviews  his  arguments,  pointing  out 
the  advantages  in  handling  his  line.  Or,  he  may  emphasize 
some  one  point  that  he  had  not  played  up  sufficiently: 


"Did  I  make  it  clear  to  you  that  there  ia  tut  one  re- 
frigerator manufactured  in  this  country  using  genuine  porcelain 
food  compartments,  and  that  ia  the  Alaska?  There  are  plenty  of 
Imitations  of  one  kind  or  another  under  misleading  names.  Some 
of  tttem  are  good  refrigerators  tut  none  of  them  will  give  such 
eervice  as  the  Alaska. " 


Some  service  argument  is  always  effective  and  seized  upon 
by  salesmen  with  pleasure: 


"I  received  word  from  headquarters  this  morning  that 
the  new  factory  v.a3  opened  yesterday.  This  Is  equipped  with  the 
most  modern  machinery  and  it  practically  doubles  our  capacity. 
We  are  now  prepared  to  give  you  hotter  service  than  ever  hefore-- 
ietter  service  than  any  other  house  in  the  country.  Wire  a  rush 
order  and  see  how  we  take  care  of  you. " 


PUTTING  NEWS  VALUE  INTO  LETTERS  97 

Another  effective  letter  to  a  customer  vshows   him    how 
the  salesman  keeps  his  individual  problems  in  mind: 


"On  my  return  trip  I  am  going  to  tell  you  about  a  clever 
window  I  saw  at  the  People's  Store  at  Benton.  They  have  a  corner 
window  Just  like  yours,  and  the  minute  I  eaw  the  trim  and  the 
crowd  it  attracted  I  said  to  myself:   'There's  Just  the  thing 
for  Watson, '  and  I  arranged  to  have  a  photograph  taken  and  can 
show  you  just  how  the  stunt  was  worked — you'll  te  needing  a  new 
line  of  neckwear  hy  the  time  I  get  hack." 


A  selling  scheme  is  offered  as  well  as  goods,  and  salesmen 
from  rival  houses  will  find  it  practically  impossible  to  get  an 
order  from  Watson  as  long  as  this  man  is  taking  such  a  per- 
sonal interest  in  the  development  of  his  business. 

News  of  market  conditions  that  will  bear  directly  on  a 
sale,  offers  opportunity  for  some  such  letter  as  this: 


"The  weather  conditions  of  the  past  few  weeks  Indicate 
a  shortag^in  the  wheat  crop.  Prices  of  flour  are  sure  to  ad- 
vance.  I  cannot  advise  you  too  strongly  to  place  orders  for  sev- 
eral car  loads  at  once.   New  Doninion  flour  is  as  safe  an  invest- 
ment as  government  honds — and  will  yield  many  times  the  profit." 


Give  the  salesman  ammunition  such  as  a  special  offer  on 
goods  and  he  may  get  orders  by  mail  from  his  customers.  He 
may  send  letters  back  over  the  territory  just  covered  and  save 
the  time  and  expense  that  a  return  call  would  involve.  This 
letter  is  a  good  illustration: 

"Xook  at  the  enclosed  display  stunt. 

"Our  display  experts  have  proven  that  It  doubles 
sales.   It  certainly  is  the  most  attractive  scheme  you'll  see 
this  year. 

•The  house  has  promised  to  give  you  one  of  these 
display  racks--mind  you.  give  it  you,  if  you  will  advance  your 
fall  order  a  week  or  two  and  take  the  full  gross  of  platea. 

"This  is  a  ten-day  offer  and  I  can't  reach  you  within 
that  time.  Use  the  enclosed  order  blank  and  reach  me  at  fienioi.. 
Hotel  Columbia. ■ 


i)8  SHOWING  REAL  INTEREST  IN  CUSTOMERS 

Special  price  tips  often  secure  OrcJers  by  mail  when  the 
salesman  is  pressed  for  time.  The  fact  that  a  salesman  makes 
a  special  proposition  of  this  kind  not  only  shows  his  interest  in 
the  customer,  but  impresses  him  with  the  "time  limit"  or  the 
''limited  supply,"  inducing  him  to  "order  now." 

The  salesman's  cooperative  letter  assists  the  house  in  the  quick 
adjustment  of  complaints,  and  most  salesmen  feel  that  their 
time  is  well  spent  in  personally  straightening  out  kinks,  as 
it  gives  an  opportunity  to  show  that  their  interest  really  ex- 
tends beyond  taking  the  order.  Here  is  the  way  one  salesman 
handled  such  a  situation: 


"Notification  of  your  complaint  haa  just  reached  flie.but 
Have  not  reoeiTod  particulars  regardins  the  exact  nature  of  the 
trouble.  Write  me  fully  and  I  can  doubtless  tell  you  Just  how 
to  remedy  it.  Be  assured  there  ia  nothing  seriously  wrong  with 
your  machine,  for  every  one  is  thoroughly  tested  before  being 
chipped.   The  trouble  is  due  to  sona  little  part  that  is  not  just 
properly  adjusted.   If  you  can't  explain  the  situation  thor- 
oughly in  a  letter,  wire  me  and  I'll  change  ay  route  so  as  to 
reach  CenterTille  Saturday  night  and  get  the  machine  running 
properly. " 


Often  a  clever  twist  may  be  applied  by  the  salesman,  in 
cases  of  unjust  complaints,  by  which  his  letters  will  save  future 
sales.  A  buyer  who  had  overstocked  tried  to  place  the  blame 
on  the  house,  but  the  salesman  smoothed  over  the  imagined 
difficulty  and  tactfully  thrust  upon  the  customer  an  obligation 
to  hold  his  next  order  for  the  house: 


"1  was  sincerely  sorry  to  receive  notice  from  the 
house  that  you  claim  the  books  snipped  were  not  as  ordered.  I 
have  never  known  the  sales  or  shipping  department  to  maVe  a  sim- 
ilar mi8take--in  fact,  Ky  experience  tells  mo  that  they  are  un- 
usually painstaking  and  careful. 

"Even  though  the  house  investigation  indicated  noth- 
ing wrong,  I  can  promise  that  your  interests  will  be  considered 
first. 

'You'll  agree  with  me  I'm  6ure,  that  they  have  met 
your  complaint  with  all  fairness  when  they  allow  the  books  re- 
turned. Don't  take  the  time  to  thank  me  now.  I'll  call  in  a 
month  with  my  fall  sampler  and  you  can  do  it  then.* 


HOAV  ONE  FIRM  VARIES  ITS  STATIONERY 


99 


The  Nt-  \'-t:   Fd^--."   Company 


■    \r,:i     F   : 

'-^ ife 

Six 

«"ll 


Mz^  n«N-«Y. 


A=^ 


liiiiiiiiliiiiliiliiliiilliiiiilillilliii 

A  series  of  letterheads  thai  illustrate  various  uses  of  the  product  and  so  not 
only  vary  the  appearance  of  successive  letters  but  afford  good  advertising 


100         MAKING  USE  OF  DIFFERENT  LETTERHEADS 


'111  I  »  "F'b  v'-S 


f  >y>w-  Ao(//Hls  (on// Hint/ 


,\'nui   l^/' ■>!,.<!.(,  n.r 


Aiiieucan   Fyfie:  I'oundcrs  Cc)mj)any 


■i-:i<  w  I  vi'K  rorxni-Ks  ( ( -■^!i'  Wi 


yhncjican  "'Uilpc  FaiintJcrs  Conipitnii 


fi;i'iii!!i:ii!i;iiii!^ii'i?iii!i'iiiiii'ifii:ii!!i(i;:';ifii;i!i[i'iiiF!i':i^ 


ill  II  I 


For  different  departments,  to  handle  different  classes  of  correspondence,  or 
simply  to  vary  their  follow-up,  varying  letterheads  are  used 


THE  ATTITUDE  THAT  IMAKES  FRIENDS  101 

The  salesman  is  often  the  first  to  see  the  injustice  of  de- 
lays and  mistakes  in  shipping,  and  the  best  judge  as  to  the 
responsibility  for  overstocking  or  damaged  goods.  His  letter, 
backing  up  the  house  letter,  goes  a  long  way  towards  smooth- 
ing out  the  trouble.  He  may  seek  only  to  back  up  the  house 
and  give  the  customer  assurance  of  fair  treatment.  For  example: 


"I  aa  very  sorry  to  learn  that  the  Cocheo  Tweed  was 
lamaged  In  shipment.  The  house  will  speedily  make  it  good--in 
fact,  I  have  heen  advised  that  the  perfect  stock  will  te  ex- 
pressed to  you  prepaid  this  week. " 


Matters  of  purely  private  interest  never  fail  to  get  under  the 
the  skin  of  the  customer.  If  the  salesman  can  establish  a  point 
of  contact  through  some  medium  entirely  removed  from  busi- 
ness, he  may  overcome  indifference  and  even  break  down  preju- 
dices, A  western  salesman  who  had  been  unable  to  land  an  order 
from  a  customer  previously  antagonized  by  some  house  policy, 
learned  that  this  man's  one  particular  hobby  was  thoroughbred 
horses,  so  he  wrote  the  customer,  just  previous  to  his  visit: 


"I'm  coming  over  to  looK  at  your  stables.   I'm  inter- 
ested in  fine  stock  and  I'm  told  your  stable  is  the  best  in 
this  section. " 


The  customer  greeted  him  warmly  when  he  called.  They 
talked  "horse"  for  an  hour.  Then  the  salesman  inserted  the 
fine  edge  of  his  "canvass,"  and  found  his  man  receptive.  In 
ten  minutes  after  reaching  his  customer's  office,  the  sale  was 
closed,   and   they   were  talking  "horse"  again. 

To  another  customer,  a  golf  enthusiast,  the  salesman  wrote 
in  this  way: 


"Garden  played  in  his  best  form  at  the  All  Western,  but 
he  sprained  his  ankle.   Can't  you  write  him  a  note?  I  hope  we 
can  find  tlnie  to  play  a  round  next  time  I  am  in  Green  Valley." 


Aiding  the  customer   in   his    private    affairs,  and  thereby 
making  him  indebted  to  the  salesman  is  one  of  the  possibilities 


102 


FILING  DATA  ABOUT  CUSTOMERS 


of  a  letter.  A  tip  on  the  market,  an  unusual  investment  opportun- 
ity, a  word  of  sjinpathy  on  account  of  sickness  in  the  family — ■ 
the  avenues  of  approach  are  innumerable  for  the  alert  salesman. 

Tact  is  always  essential  and  the  salesman  should  adopt  the 
viewpomt  of  the  person  to  whom  he  is  writing  and  take  up 
whatever   phase  of  a  subject  will  appeal  most  to  him. 

This  requires  an  extensive  knowledge  of  trade,  house  and 
customers.  If  the  salesman  tries  to  carry  all  this  in  his  mind 
he  will  "miss  goal"  frequently.  He  should  have  a  system  of 
gathering  these  facts  and  filing  them  for  quick  reference. 

A  good  method  for  gathering  and  keeping  track  of  news 
is  to  make  out  a  customer  card  on  which  can  be  entered  the 


SALESMAN'S  LETTERS 
TO  CUSTOMERS 

.. 

S«1.CSM*N'S  HOTCL 
WBITTtN  lETTtB 

HOUSC  rORM  LCTTen 
SENT  TO  SALESMAN 

ron  Signature:  and 

POSTSCniPT 

HOUSE  rORM  tETTCa 
MAIlCO  OVCB  SALCS- 
MAN  S  SlGNATURe 

r 

1 

1 

1 

Custom  »s 

C'VCS 

iiiipnissiow  Of 

'**H£vc3i'r 

^ 

C0HRL*)«ira 

«<icuwt*«r5 

"'"" 

"""-;-' 

SfEC.At. 

CAJIRKS  n(tt 
SALES 

A  chart  sliowing  the  many  ways  in  which  the  salesman  can  use  letters 
to  keep  in  touch  vnlh  his  trade 

names  and  addresses  of  customers,  their  business  standing, 
orders  taken,  approval  required  for  orders  and  discounts  used. 
Under  a  "Remarks"  space  the  salesman  can  enter  general  in- 
formation, special  conditions  in  the  customer's  business, 
matters  that  will  need  investigation  and  further  attention.  If 
he  is  wise  he  will  add  some  data  regarding  personal  charac- 
teristics, such  as  private  interests  of  the  customer,  his  home 
interests,  his  hobbies — anything  that  will  give  a  hint  to  be  used 
later  in  letters.  Occasionally  he  finds  a  selling  scheme  used 
by  some  dealer  that  will  be  of  service  to  some  other  customer 
and  he  makes  a  note  of  this  on  the  card. 


POSTSCRIPTS  THAT  GIVE  THE  "PERSONAL"  TOUCH   103 

Some  simple  method  of  classifying  these  cards  is  neces- 
sary. One  method  is  to  use  a  small  file,  lettered  and  tabbed  to 
enable  the  salesman  to  got  any  particular  card  without  difficulty. 
A  "tickler  system"  is  sometimes  employed.  This  is  a  simple 
box  with  guide  cards  numbered  from  one  to  thirty-one  and 
another  set  of  cards  numbered  from  one  to  twelve,  indicating 
the  days  and  months.  Behind  the  card  indicating  the  date  on 
Tvhich  a  customer  is  to  be  WTitten,  the  customer  card  is  in- 
serted and  it  comes  up  mechanically  for  attention  on  that  date. 

To  save  time  for  the  salesman  the  house  may  get  out  a 
form  letter  and  send  it  to  him  for  his  signature,  a  postscript 
and  mailing.  These  letters  lack  the  intimate  personal  feature, 
but  they  carry  inspiration  and  more  forceful  arguments 
than  can  be  written  by  the  majority  of  salesmen.  The 
salesman  can  sign  and  postscript  twenty  form  letters  in  the 
time  it  would  take  him  to  write  a  couple  of  personal  messages. 

Some  situation  may  arise  making  it  desirable  to  cover  a  large 
territory  quickly,  and  the  subject  demands  both  skilled  prep- 
aration and  an  intimate  appeal.  Here  the  form  letter  signed 
by  the  salesman  fills  the  requirement.  The  postscript  and  signa- 
ture add  personality;  the  post-mark,  since  the  letter  is  mailed  from 
a  point  in  the  field,  assures  attention  from  the  customer. 

The  actual  sales  value  of  such  letters  was  shown  in  a  Chicago 
wholesale  dry  goods  house,  that  had  on  hand  a  quantity  of  a 
certain  brand  of  hosiery  that  had  proved  a  slo:w  seller.  A  cut 
was  made  to  dispose  of  the  surplus  stock. 

The  manager  decided  upon  a  letter  campaign.  Letters  were 
written  from  the  attitude  of  the  salesmen,  in  the  first  person, 
and  sent  to  salesmen  in  the  territories  for  signature  and  post- 
script. Merchants  who  had  refused  the  stock  were  reached  by 
the  cut  price  and  more  than  one-third  of  them  placed  orders. 

Formal  house  announcements,  price,  quotation,  seasonal 
openings  and  new  house  policies  are  usually  cold  and  im- 
personal. But  add  the  salesman's  signature  and  an  intimate 
postscript,  and  they  glow  with  warmth  and  personality. 
A  sentence,  written  at  the  bottom  of  the  generalizing  form 
letter,  adds  an  indi\ddual  message  that  gives  to  it  the  vitality 
of  a  personal  letter. 

Even  if  the  salesman's  memory  does  not  furnish  him  with 
ideas  for  postscripts  that  add  local  color  to  a  letter,  his  "Pocket 
Album  of  Buyers"  or  his  customer  file  will  give  him  the  neces» 


104        A  SYSTEM  FOR  HANDLING  FORM  LETTERS 

sary  suggestions  either  of  a  business  or  a  private  nature.  His 
card  file  says  that  Jones  is  intensely  interested  in  the.  temper- 
ance question,  and  he  adds  the  postscript: 

"You    remember   our  discussions   oven   that   local   option 

6ght  at  B -?    Well,  you  win.     The  drys  carried  the  county 

— hands  down." 

Or  his  file  memoranda  says  that  Brown  is  a  warm  social- 
ist, and  he  takes  the  cue  for  his  postscript: 


RECORD  OXGALLS 


-     PCMARKS. 


This  is  a  simple  and  convenient  form  of  card  on  which  tlie  salesman  may 

keep  a  record  of  his  regidar  customers.     The  upper  form  sliows  the  face 

aria  the  lower  tlie  back  side  of  tfiecard.    Space  is  provided  for  all  the 

information  iJmt  is  required  by  the  average  salesman 

"Your  friend  Whitney  spoke  to  over  ten  thousand  people 
at  Central  City  last  night.  I  went  out  to  hear  him  and  was 
quite  favorably  impressed." 

In  the  letter  itself,  the  personal  pronoun  is  always  used  and 
the  mechanical  details  of  make-up  are  watched  closely  to  give  the 
impression  of  the  salesman's  personally  dictated  message.  To 
narrow  a  generally  applicable  subject  down  to  a  more  indi- 
vidual appeal,  is  of  foremost  importance,  and  this  makes  it  neces- 
sary for  the  house  correspondent  to  have  a  complete  knowledge 
of  trade  conditions,  customers  and  the  salesman's  work. 

For  example,  all  the  customers  in  a  western  territory  may 
be  affected  by  a  poor  wheat  crop,  or  an  eastern  territory  may  be 
especially  affected  by  labor  conditions,  or  a  southern  section 


SPECUL  INFORMATION  THAT  CO:\IPELS  INTEREST  105 

may  be  afTcctcd  by  a  demoralizing  political  campaign.  The 
correspondent  must  keep  in  touch  with  local  conditions  and 
make  use  of  such  information. 

To  segregate  the  form  letters  going  into  different  territories, 
a  simple  system  may  be  adopted.  A  series  of  code' numbers  or 
letters  indicate  the  different  salesmen  and  their  territories.  Each 
customer  card  is  marked  with  its  code  number  or  letter  and 
when  the  envelopes  are  addressed,  this  code,  marked  on  the 
outside  in  an  inconspicuous  manner,  shows  to  which  territory 
they  belong.  They  are  then  grouped  by  territories;  form  letters 
are  filled  in  and  laid  out  with  the  envelopes  and  sent  to  the 
various  salesmen. 

There  is  another  class  of  letters — the  third  method  of  creating 
closer  appeal  by  employing  the  personality  of  the  salesman. 

These  are  the  house  form  letters,  given  a  more  intimMe 
application  by  being  written  in  the  first  person  and  the  salesman's 
signature  is  applied  mechanically.  As  in  the  use  of  the  "post- 
script" letter,  this  medium  of  approach  may  involve  all 
but  the  most  individual  matters,  since  it  can  deal  with  any 
subject  that  applies  to  an  entire  class  of  customers.  Its 
most  effective  use  in  customer  handling,  however,  is  in  supply- 
ing a  medium  for  subjects  that  do  not  need  the  detailed  formula 
of  adding  a  postscript.  This  includes  such  form  letters  and 
house  communications  as  deal  with  announcements  of  a  very 
general  application — any  message  that  should  reach  the  cus- 
tomers between  calls  of  the  salesman,  needs  a  more  personal 
touch  than  the  house  form  letter  can  supply.  Here  the  use 
of  the  salesman's  signature  is  enough  to  destroy  the  otherwise 
cold  formality. 

A  scheme  of  this  kind  was  applied  by  a  dental  supply  house 
manager  m  letters  to  a  certain  class  of  graduating  students  and 
unusual  results  were  secured.  This  sales  manager  had  to 
fight  five  competing  houses,  all  strongly  entrenched.  His 
salesmen  had  been  meeting  the  students  and  building  an 
acquaintance  upon  which  to  land  sales  of  supplies  at  the 
close  of  the  state  examinations,  but  salesmen  for  the  other 
houses  were  equally  active.  The  sales  manager  secured, 
through  his  friendship  with  state  officials,  a  list  of  the  suc- 
cessful students  before  the  returns  were  published. 

How  to  give  out  the  information,  get  the  credit  for  the 
Scheme  and  land  the  orders,  was  the  question.     He  decided  to 


106  THE  POSTAL  AND  MAIL  FOLDER  USEFUL 

send  letters  through  his  salesmen.  A  form  letter  giving  out 
the  news  and  tactfully  taking  the  credit,  was  written  in  the 
first  person,  signed  and  mailed  by  the  salesmen,  each  sales- 
man reaching  the  students  he  had  especially  cultivated. 
The  letter,  in  its  closing  clause,  inserted  the  fine  edge  of  the 
sales  argument,  in  this  way: 


"You  win  Ije  locating  eoon,  and  you'll  want  to  look 
around  pretty  carefully  before  deciding  on  your  office  equip- 
Bent.  Better  take  a  moment  and  come  in  to  talk  over  this  matter. 
Wr.  Black,  our  manager,  can  give  you  some  valuable  euggestlono. 


This  letter  put  on  the  one  final  clincher  that  swung  the 
business.  Not  only  did  it  give  the  salesmen  an  advantage, 
but  it  brought  buyers  direct  to  the  house. 

Where  the  list  of  customers  runs  into  the  thousands,  some 
mechanical  system  must  be  used  for  applying  the  signature. 
One  western  concern  adopts  this  simple  though  effective  method: 
code  numbers,  marked  on  each  customer  card,  indicating  the 
salesman  covering  the  territory,  are  transferred  to  the  envelopes 
during  the  addressing  work.  These  envelopes  aii-e  sorted  by 
code  number  and  filed  separately,  and  an  equal  number  of 
letters  laid  with  them.  Then  girls  with  rubber  stamps  quickly 
add  the  salesman's  signature. 

There  is  still  another  medium  of  reaching  customers:  the 
postal  or  mail-folder,  may  be  used  under  certain  conditions 
by  the  salesman.  Its  duties  are  best  adapted,  however,  to 
antiouncements  of  calls  and  reminders  that  require  only  a 
brief  message.  These  cards  may  be  a  regular  form,  supplied 
by  the  house  and  filled  in  by  the  salesman  at  his  hotel.  Their 
greatest  advantage  lies  in  the  convenience  in  mailing  and 
cheapness.  Many  salesmen  sit  up  nights  thinking  out  new 
ideas  and  clever  ways  of  getting  out  announcement  cards — 
something  original  that  will  more  strongly  impress  upon  the 
customer  the  date  of  their  next  call. 


How  to  Collect  Mercantile  Ac* 
counts  by  LETTER 

PART  XIV COLLECTING  MONEY  BY  MAIL CHAPTER  61 

THE  CUSTOMER  %vho  is  ''no  good''  is  so 
quickly  branded  by  mercantile  agencies  \hat  few 
losses  occur  through  him.  The  troubles  of  the 
credit  man  come  from  the  HONEST  Debtor  who  is 
delinquent  through  unforeseen  circumstances,  and 
the  Trickster  who  is  ''sure  'pay'*  but  who  re- 
sorts to  any  scheme  to  defer  settlements.  The 
problem  of  forcing  collections  from  these  two 
classes  of  customers^  at  the  same  time  retaining 
their  ircme,  requires  tact  and  a  penetrating  knowl- 
edge of  human  nature  and  of  business  practice 
—as  explained  in  this  chapter 

IT  IS  comparatively  easy  to  order  goods — it  is  another 
thing  to  pay  for  them.  The  assertion  that  selling  merchan- 
dise is  the  hardest  problem  in  the  business  world,  is  chal- 
lenged by  the  men  in  charge  of  the  collections  for  large  wholesale 
houses  and  manufacturing  concerns. 

The  importance  of  the  collection  letter  makes  it  necessary  to 
weigh  every  word  carefully.  If  a  sales  letter  goes  v/rong  the 
house  merely  loses  the  sale — it  still  has  the  goods  on  its  shelves; 
if  the  collection  letter  falls  down  the  house  loses,  not  only  its 
profit  on  the  sale,  but  the  goods  as  well.  The  sales  letter  that 
misses  the  mark  does  not  prevent  the  house  from  coming  right 
back  the  next  week  with  another  proposition  to  the  same  in- 
dividual. But  if  the  collection  letter  runs  amuck,  the  gates  are 
closed,  shutting  off  future  business  relations  between  the  house 
and  the  merchant. 


108     COiAIMERCIAL  VERSUS  INSTAUMENT  ACCOUNTS 

The  sales  letter  persuades  a  man  to  take  something  on  which 
he  believes  he  can  make  money;  the  collection  letter  must  induce 
him  to  give  up  that  which  he  has  acquired  by  toil  and  hard  work. 
The  poor  selling  letter  is  tossed  into  the  waste  basket  and  for- 
gotten, but  the  undiplomatic  collection  letter  may  offend  a  man, 
and  he  will  not  forget  it — he  will  charge  it  up  against  the  house 
and  do  business  with  some  other  concern. 

Collections  usually  fall  into  two  divisions:  commercial  ac- 
counts and  instalment  accounts,  each  of  which  presents  its  own 
problems.  This  chapter  will  deal  with  mercantile  accounts 
and  how  they  should  be  handled. 

Most  credit  men  divide  debtors-  into  three  classes:  the  honest 
debtors,  who  are  delinquent  through  poor  management  or  because 
of  circumstances  over  which  he  has  no  control;  the  tricksters,  who 
are  looked  upon  as  sure  but  slow  pay — men  who  know  all 
the  clever  devices  for  delaying  payment  for  the  sake  of  the 
interest  on  their  money;  and  theI^there  are  tlie  dishonest  debtors, 
who  try  to  beat  their  creditors  by  hook  or  crook. 

The  merchant  who  is  "no  good"  is  soon  reported  by  the 
agencies  and  dealings  with  him  should  be  on  a  cash-with-order 
basis  or  goods  should  be  sent  Qut  C.  O.  D.  It  is  over  the  other 
two  classes  that  the  credit  men  lose  sleep — the  men  who  are  nat- 
urally or  unavoidably  slow  and  men  who  will  do  anything 
to  hold  onto  their  money  for  a  few  weeks  or  even  for  a  few  days. 

All  credit  letters,  no  matter  to  which  class  they  are  directed, 
must  have  tact  and  firmness — tact  in  making  the  appeal  that  is 
most  likely  to  strike  home  and  firmness  to  give  the  impression 
that  there  is  no  alternative:  the  debt  must  be  paid.  And  so  it 
is  necessary  for  the  letter  to  have  individuality,  yet  be  pliable 
enough  to  shape  itself  to  fit  individual  cases.  On  this  account, 
many  concerns  are  discarding  form  collection  letters  almost 
altogether,  and  the  writers  who  make  the  high  scores  in  collect- 
ing money  by  mail,  study  tlie  individuals  to  whom  they  are  writing, 
try  to  understand  their  problems,  sympathize  with  their  dis- 
appointments, and  give  to  their  letters  an  intimate  personal 
touch — the  while  remaining  firm  in  their  attitude  that  the  obUga- 
tion  must  be  taken  care  of  fully  and  promptly. 

It  is  necessary  for  the  man  who  writes  the  collection  letter 
to  have  a  most  complete  knowledge  of  the  debtor's  condition 
— his  past  record,  the  size  and  character  of  his  business,  his 
reputation,  his  competition,  the  local  problems  and  any  other 


PERSONAL  ELEMENT  IN  A  COLLECTION  LETTER     109 

facts  that  he  can  secure  from  letters,  from  salesmen,  from  com- 
mercial agencies  and  from  other  sources  of  information. 

When  it  comes  to  writing  the  letter,  do  not  lose  sight  of  the 
fact  that  a  debt  is  a  plain  business  obligation;  do  not  let  the 
debtor  look  at  it  in  any  other  light.  Whether  the  letter  is  the 
first  reminder  or  the  last  in  your  follow-up,  it  should  have  this 
attitude:  the  bill  is  an  obligation  that  cannot  be  avoided.  At  the 
first  intimation  that  you  fear  he  is  not  going  to  pay,  he  will  be 
encouraged  to  think  up  new  excuses  for  deferring  the  payment 
or  of  evading  it  altogether. 

Another  fundamental  principle  of  the  collection  letter  is  the 
necessity  forgiving  it  life;  makiBgat  breathe  a  spirit  of  human 
interest.  Don't  treat  the  debtor  as  if  he  were  a  criminal  trying  to 
escape  punishment.  Even  though  you  may  be  convinced  that 
he  is  a  rogue,  telling  him  so,  is  a  poor  way  of  getting 
your  money.  The  letter  can  be  firm  and  dignified  without 
being  insulting.  If  it  is  a  new  experience  to  a  man  to  be  abused 
he  will  be  too  sore  to  respond,  and  if  he  is  a  "professional  dead 
beat"  to  whom  insults  are  every-day  occurrences,  your  letter  will 
not  stir  hira   to  action.    Another  approach  must  be  found. 

Show  a  man  politely  that  you  mean  business,  impress  upon  him 
that  you  intend  to  give  him  a  square  deal  and  that  you  expect  the 
same  from  him.  Show  him  how  it  is  to  his  advantage  to  settle 
the  obligation;  remember  the  "you"  element,  and  that  it  is  a 
mistake  to  write  the  collection  letter  from  the  standpoint  of  "I" 
and  "my,"  just  the  same  as  it  is  in  the  sales  letter.  Emphasize 
the  "you" — point  out  to  the  debtor  how  it  is  to  his  interest  to 
settle  the  account  and  keep  his  record  clean. 

There  is  no  more  common  mistake  than  to  make  an  appeal 
for  money  on  the  ground  that  it  is  needed.  Here  is  a  familiar 
form  of  letter: 


"Ue  dislike  to  remind  you  again  of  your  account 
CUBOuntlng  to  $    but  we  find  ourselves  short  of  funds  Just  at 
this  time  and  will  appreciate  a  prompt  remittance.  Under  other 
circumstances  we  might  he  very  glad  to  grant  you  a  further  ex- 
tension of  credit,  but  Just  now  we  must  Insist  upon  an  Immediate 
eettlqment. 

"I  an  enclosing  a  return  envelope  and  will  look  for 
your  renlttancer  c6  cover  this  amount  by  the  next  mall." 


110 MUST  CX)NSIDER  FUTURE  BUSINESg 

In  the  first  place,  such  a  letter  shakes  the  merchant's  confi- 
dence in  the  wholesale  house  for  it  indicates  that  the  concern  is 
operating  on  a  narrow  margin,  or  else  it  has  poor  management. 
But  more  than  that,  it  gives  the  man  an  excuse  for  not  paying. 
He,  too,  will  make  a  "hard  up"  cry. 

There  may  be  times  when  it  seems  desirable  to  shape  an 
appeal  along  this  line  but  it  can  be  done  without  a  loss  of  dignity 
or  a  shaking  of  confidence  in  the  stability  of  the  house. 

One  firm  writes: 


"When  you  consiaer  mat  we  aro  handling  over  30.000 
Accounts  you  will  appreciate  that  a  fe«  dellniiuent  ones  here 
and  there  soon  amount  up  to  many  thousands  of  dollars,  and  as 
ve  discount  all  our  hills  promptly  we  feel  that  we  must  insist 
upon  a  prompt  payment  of  these  overdue  accounts. " 


This  gives  the  customer  a  little  glimpse  of  the  firm's  position 
and  there  is  no  begging  tone  about  the  letter.  Any  well-balanced 
business  man  will  recognize  the  soundness  of  the  explanation 
and  respect  the  house  for  maintaining  such  a  policy. 

But  the  letter  writer  must  never  lose  sight  of  the  fact  that  the 
debtor  is  a  customer,  whose  future  patronage  is  desired,  and  it  is 
the  policy  of  nearly  every  wholesale  house  to  grant  reasonable 
extensions  when  there  is  any  legitimate  reason.  Extending 
accommodations  may  be  the  quickest  and  easiest  way  of  collecting 
a  debt,  and  at  llie  same  time  it  may  place  a  customer  under  such 
an  obligation  to  the  house,  that  he  v.ill,  in  the  future,  give  it  a 
larger  share  of  his  patix^nage.  Future  dealings  can  be  ignored 
only  in  the  case  of  individuals  who  are  such  poor  pay  that  their 
trade  is  not  desired. 

So  the  man  at  the  head  of  a  collection  department  has  a  two- 
fold problem:  to  collect  the  sxxounta  with  reasonable  promptness 
and  to  retain  the  good  will  and  patronage  of  the  customer.  It  is 
a  common  experience  that  four  letters,  increasing  in  urgency 
will  determine  the  attitude  of  the  debtor.  Four  letters  should 
either  collect  the  account,  lead  to  a  satisfactory  arrangement  for 
its  payment,  or  convince  the  credit  department  that  the  account 
will  not  be  settled  without  assistance  from  lawyers  or  collection 
agencies.  WTiere  a  greater  number  of  letters  are  used,  they  do 
not  make  a  strong  enough  impression  and  it  is  almost  impossible 
to  prevent  an  anti-climax. 


THE  FIRST  COLLECTION  LETTER  OF  A  SERIES    111 

It  is  obvious  that  the  first  letter  should  be  very  friendly 
and  merely  call  the  customer's  attention  to  the  fact  th  ^t  his 
account  is  overdue.  The  attitude  should  be  taken  that  the 
matter  has  doubtless  escaped  his  attention,  and  the  barbed  point 
may  be  concealed  by  a  little  selling  talk  about  some  new 
li.nes  of  goods,  or  some  personal  comment  on  subjects  of  mu- 
tual interest. 

Here  is  the  way  a  wholesale  paper  house  wrote  to  one 
of  its  customers  who  had  failed  to  remit  with  his  usual  prompt- 
ness: 


Dear  Mr.  Smith: 

In  running  over  tne  Books  this  morning,  I  happened  to 
nctloe  that  your  Octoher  bill  has  not  been  paid.  This  is  not 
irorryinz.me  at  all  for  I  have  no  doubt  it  haa  simply  escaped 
yonr   attention  and  so  I  am  writing  Just  to  remind  you  of  it  and. 
If  oonvcniont,  I  will  be  very  glad  if  you  will  send  us  a  draft 
not  later  than  the  20th. 

1  was  down  in  the  shipping  room  yesterday  when  a 
new  line  of  envelopes  was  opened--a  high  grade  linen  finish 
Bade  from  Bismark  Bond.  The  sample  I  have  enclosed  is  made 
from  20  lb.  stock  and  is  priced  at  {1.20  per  thousand.  Isn't  It 
a  dandy?  Compare  it  with  any  15^  bond  and  see  if  it  isn't  the 
biggest  bargain  you  nave  run  across  in  many  a  day.  It  comes  in 
white,  azure,  golden-rod  and  canary.  Better  include  a  few 
thousand  of  these  envelopes  with  etook  to  match  In  your  next 
ordor.  Show  them  to  your  customers.  They  will  be  ready  sellers. 

Very  cordially  yours. 


Such  letters  as  this  possess  great  pulling  power.  In  the 
majorify  of  cases,  such  accounts  have  not  been  settled  because 
the  customers  were  rushed  with  work  and  neglected  to  hustle 
in  their  own  collections.  There  is  nothing  about  such  a  letter 
that  will  give  ofFense,  and  usually  its  spirit  will  be  appreciated. 
Not  only  will  the  letter  bring  in  the  belated  remittance,  but  it 
also  carries  a  selling  talk  that  frequently  pulls  an  order  in 
the  same  envelope  with  the  draft. 

If  such  a  letter  does  not  call  forth  a  reply,  a  second  and 
more  urgent  letter  should  be  sent  out  not  more  than  ten  days 
ttfter  the  first. 


112  THE  SECOND  COLLECTION  LETTER 


The  following  is  a  second  letter  that  proved  effective  in  many 
cases: 


Sear  Ur.  Smltb: 

As  you  know,  your  account  is  now  considerably  overduo, 
and  I  am  wondering  why  we  have  not  received  a  remittanoe  or  a 
reply  to  our  letter  of  the  13th. 

A  duplicate  statement  of  the  account  is  enclosed  and  I 
wish  you  would  please  let  us  know  if  there  are  any  items  which 
do  not  agree  with  your  books,  so  that  we  can  adjust  any 
discrepancy 

If  our  statement  does  agree,  a  remittance  will  'bo 
much  appreciated.  May  we  not  receive  your  check  by  retura 
nail? 

By  the  way,  what  did  you  think  of  the  sample  of 
Bismark  Bond  envelopes  which  1  sent  you?  These  are  proving  ons 
of  the  big  sensations  in  the  printing  world  and  I  am  sure  you 
will  find  them  a  very  profitable  line  to  carry  in  etock. 


Very  truly  yours. 


It  is  generally  agreed  that  sales  talk  in  subsequent  letters  is 
wasted.  The  third  and  fourth  letters  must  be  short,  sharp  and 
to  the  point.-  Here  is  the  third  letter  that  is  used  where  the  first 
two  have  failed  to  bring;  results: 


Dear  Sir: 

Tour  attention  has  twice  "been  called  to  your  unpaid 
Bccoant,  but  for  some  reason  you  have  not  replied  to  our  letters. 

Our  terms,  as  you  know,  ere  thirty  days  and  we  cannot 
allow  a  longer  ewtension  except  by  special  agreement.  Uay  we 
expect  your  check  by  return  mail?  If  you  cannot  send  the  whole 
amount  of  $94.30,  send  at  least  a  part.   Failing  to  reoei'^e  a 
remittance,  we  will  draw  on  you  on  the  6th. 

Very  truly  yours, 


WIELDING  THE  BIG  STICK  113 

There  may  be,  of  course,  exceptional  cases  where  it  is  desir- 
able to  send  out  more  letters  to  coax  a  collection  from  a  customer 
but  in  the  majority  of  instances  the  creditor  is  justified  in  taking 
more  drastic  steps  to  force  payment,  if  three  letters  fail  to  call 
forth  either  a  remittance  or  an  explanation.  The  fourth  letter 
need  be  little  more  than  a  notification  of  the  fact  that  the  account 
will  be  turned  over  to  an  attorney  or  collection  agency.  A 
fourth  letter  is  usually  short  and  something  like  this: 


"Our  three  requests  for  payment  of  your  October  bill 
have  been  ignored.  As  this  acoou.it  is  long  past  due,  and  we 
bare  not  roceived  even  an  explanation  for  this  delinquency,  W9' 
feol  that  we  cannot  carry  it  longer  on  our  books,  and  unless  It 
Is  paid  by  the  22nd  we  shall,  without  further  notice,  turn  It 
over  to  our  attorneys  for  oolleotion." 


At  times,  however,  the  fourth  letter  may  be  longer  in  order 
to  impress  upon  the  customer  the  undesirability  of  having  legal 
action  commenced.    Here  is  one  used  by  a  successful  collector: 


Dear  Sir: 

In  order  to  do  you  no  Injustiod  b;  taking  lesal  aotloft 
which  might  in  any  way  affect  your  credit  standing  or  reflect 
upon  your  integrity,  we  offer  you  this  final  opportunity  to 
settle  your  account  with  us  direct.  Your  continued  neglect  dt 
this  obligation  leads  us  to  one  conclusion,  but  it  is  hard  for  us 
to  believe  that  a  man  of  your  reputation  and  standing  vould  at- 
tempt to  evade  payment  of  a  Just  debt. 

Unless  we  hear  from  you  within  ten  days  with  a  sub- 
ctantlal  payment  to  apply  on  the  account  we  will  be  convinced 
absolutely  of  your  intent  to  evade  payment  of  this  obligation, 
and  the  account  will  be  referred  to  our  legal  department  with. 
Instructions  to  take  any  action  necessary  to  bring  about  an 
immediate  settlement  irrespective  of  the  effect  of  such  action 
upon  you.   This  is  our  final  notice  and  should  we  fail  to  hear 
from  you  within  ten  days,  as  above  stated,  the  matter  will  be 
placed  with  our  attorneys  with  instructiona  to  take  any  actloo 
necessary  to  effect  a  quick  settlement. 


Very  truly  yours. 


114  AN  EXAMPLE  OF  TACT  IN  COLLECTING 

It  seldom  happens  that  matters  go  this  far  without  a  rer  !y 
from  the  customer.  ■  If  a  man  has  been  in  business  and  expects 
to  continue  in  business,  he  realizes  that  such  negligence  on  his 
part  is  suicidal  to  his  reputation.  The  ""uorth  while"  buyer 
who  neglects  payment  always  has  a  rea?<  i  for  his  delay  and  he 
does  not  wait  until  the  third  or  fourth  letter  has  been  sent  to 
him  before  he  makes  some  explanation.  Usually  he  has  a  com- 
plaint or  has  been  disappointed  in  his  own  collections,  or  has 
met  with  reverses  that  prevent  his  taking  care  of  his  obligations 


Dear  Sir: 

Your  attention  is  called  to  our  letters  of  Sept.  7th, 
Bept.  30th,  Oct.  16th,  Kov.  11th  and  Hot.  15th,  in  which  we  ap- 
pealed to  you  in  very  urgent,  polite  terms  for  payment  of  your 
June  and  July  hills.  To  none  of  these  letters  have  we  received 
any  reply; 

In  these  days  of  close  competition,  when  quality  and 
price  are  aiming  at  achieving  the  uppermost  notch,  it  is  abso- 
lutely necessary  to  collect  promptly  in  order  to  he  able  to  pur- 
chase raw  materials  in  large  quantities  at  cash  prices.  If  we 
don't  require  this  of  our  customers,  and  our  competitors  do  rc^ 
fluire  it  of  theirs,  we  shall  find  ourselves  at  a  disadvantage  as 
to  cost  of  production  and  unable  to  compete  as  successfully  a^  wa 
should.  This  inability  will  react  to  the  disadvantage  of  our 
customers,  who  will  also  he  adversely  affected  in  their  com- 
petition with  the  custoaors  of  our  competitors. 

TESKXPOBU,  for  your  sake  as  well  as  our  own,  we  mui.  i; 
insist  on  prompt  payments.  It  is  not  right  to  let  our  money  lie 
Idle  in  your  possession  when  it  should  be  ia  use,  purchaslnc  raw 
materials  for  our  henefit  and  for  yours. 

Wa  reooniaend  to  your  appreciative  attention  this  view 
of  the  financial  end  of  our  dealings,  and  hope  you  will  respond 
by  return  mail,  for  we  ere  informed  that  you  are  well  able  to  pay 
and  only  need  the  right  kind  of  appeal,  which  we  trust  we  aro 
now  making. 

Very  truly  yours. 


(^^^i>'c.<rz.<^<2o 


yHere  is  a  clever  letter  sent  h'j  a  paint  and  varnish  company  to  ciis!omers 

at  knows  to  be  responsible  but  negligent  about  paying  bills.    TIis  argument 

Wiat  it  is  to  the  financial  advantage  of  the  debtor  as  well  as  to  the  creditor 

to  pay  up  promptly  is  neatly  and  convincingly  introduced 


COOPERATION  IN  RAISING  FUNDS  115 

with  usual  promptness.  The  credit  man  makes  a  serious  mis- 
take if  he  does  not  put  forth  a  determined  effort  to  find  out 
these  reasons  before  he  threatens  to  place  the  account  in  the 
hands  of  an  attorney,  for  after  he  has  once  made  this  threat 
he  should  invariably  "make  good." 

After  all,  the  big  problem  with  the  average  wholesale  house 
is  not  with  bad  accounts  but  with  poor  accounts — merchants 
who  are  naturally  honest,  men  who  want  to  pay  their  bills, 
but  who  through  lack  of  capital,  or  inefficiency,  or  too  great 
leniency  with  their  own  debtors,  are  slow  pay.  And  so  the 
problem  of  the  credit  manager  is  not  to  use  the  "big  stick," 
but  to  make  an  appeal  that  will  induce  the  debtor  to  bestir 
himself  and  make  some  turn  by  v/hich  this  particular  obligation 
can  be  met.  Tact,  diplornacy  and  judgment  collect  more 
accounts  than  threats  and  prosecutions.  The  actual  difference 
in  results  between  the  big  stick  method  and  diplomacy  is  shown 
by  the  experience  of  a  Chicago  wholesale  house. 

An  Iowa  dealer  owed  the  concern  five  hundred  dollars. 
Two  congenial  letters  had  failed  to  bring  an  explanation  other 
than  a  reply  that  he  simply  did  not  have  the  money  at  the 
time.  Following  blindly  in  his  routine  collection  process,  the 
credit  man  sent  this  customer  a  brief  communication  telling 
him  to  find  the  money  somewhere  or  go  to  court.  Suit  fol- 
lowed, the  merchant  went  into  bankruptcy,  and  the  firm  ulti- 
mately received  less  than  thirty  per  cent  of  its  claim. 

Six  months  later,  however,  with  a  new  credit  man  at  the  desk, 
a  similar  situation  arose  with  an  Indiana  custoiftr  on  a  six  hun« 
dred  dollar  account.  Delaying  summary  action,  the  credit  man 
proceeded  to  make  a  thorough  investigation  of  the  case.  In  a  few 
days  he  found  that  the  customer,  although  temporarily  embar- 
rassed, had  always  been  a  shrewd  and  careful  merchant,  and  that, 
if  given  time,  he  would  undoubtedly  regain  a  sound  financial 
position.    As  a  result  he  wrote  the  dealer  in  this  manner: 


Dear  Hr.  Brown: 

We  fully  appreciate  the  clrcumstancea  that  have  made 
It  Imposaible  for  you  to  settle  your  account  with  us  before  this 
time,  and  as  an  appreciation  of  the  promptness  with  which  you 
have  always  met  your  bills  in  the  past  wo  are  now  glad  to  extend 
70U  any  reasonable  accommodation. 


116  A  DIPLOMAT  THE  BEST  COLLECTOR 

What  amount  could  you  arrange  to  pay  us  monthly  on 
■your  present  account?  If  you  -can  make  regular  payments  on  it. 
"K"*  will  he  glad  to  ship  you  in  the  meantima  any  gooda  you  may  (ie« 
aire  up  to  a  reasonable  figure,  and  you  can  settle  for  them  on 
receipt  of  the  statemenr.  each  month.   This  plan  shoald  work  no 
hardship  to  you,  and  it  will  onablo  us  to  continue  doing  huel- 
jijess  on  our  long-standing  friendly  hasla.  Let  us  hear  from  you 
at  onoe. 

Very  cordially  youra. 


To  this  letter  the  merchant  replied,  offering  to  pay  $50 
each  month.  This  the  credit  man  succeeded  in  raising  to 
$60,  offering  to  ship  the  merchant  new  goods  up  to  the  value  of 
$100  monthly,  to  be  paid  for  promptly. 

On  this  basis  the  $600  account  was  settled  in  full,  the  firm 
secured  current  business  for  which  it  was  paid  promptly,  and  a 
year  later,  when  the  customer  had  reinforced  his  bank  balance, 
the  house  had  a  virtual  monopoly  of  hb  trade  in  its  line. 

^  It  should  be  observed,  too,  that  through  the  credit  man's 
strategy,  the  offer  of  a  rate  of  payment  came  from  the  merchant 
himself.  In  this  way  the  former  succeeded  in  drawing  the 
dealer  out,  getting  an  insight  into  his  financial  condition  and 
betraying  none  of  his  own  eagerness  to  secure  a  settlement. 

This  is  one  example  of  how  cautious  and  considerate  treat- 
ment of  the  customer,  and  an  understanding  of  his  case  just 
at  the  critical  time  may  point  the  way  to  a  compromise  rather 
than  to  the  court. 

To  give  instructions  in  collecting  money  by  mail  would 
be  to  conduct  a  course  in  diplomacy.  The  chief  fault  with 
the  ordinary  collection  letter  is  that  it  follows  too  religiously 
on  the  trail  of  the  stereotyped  paper  salesman.  It  contains 
too  much  machinery  and  not  enough  personality.  Be  just  as 
human  in  asking  a  man  to  pay  what  he  owes  you  as  you  are 
in  asking  him  to  buy  your  goods.  Try  to  understand  him  and 
then  let  him  know  that  you  do  understand  him;  talk  to  him 
about  his  obligations  as  you  did  about  his  needs. 

"Short  credits  make  long  friendships,"  is  a  familiar  saying 
with  credit  men.  Even  the  business  man  who  has  to  hustle 
hard  to  make  his  collections  and  to  meet  his  biUs  thinks  more  of 
the  wholesale  house  that  insists  upon. prompt  payment.    This 


THREATS  ONLY  AS  A  LAST  RESORT  117 

course  challenges  hb  respect;  it  gives  him  confidence  in  the 
policies  and  tlie  management  of  the  house. 

And  to  do  this,  of  course,  it  is  necessary  to  understand  human 
nature.  For  example,  flattery  is  a  subtle  weapon  in  collecting 
accounts — just  as  it  is  in  other  dealings.  One  very  successful 
correspondent  has  a  pJan  of  writing  a  personal  letter  to  a  delin-f 
quent,  saying  that  his  firm  has  decided  to  draw  on  all  delin-. 
quenl3  in  a  few  days;  that  he  takes  the  liberty  to  write  ]Mr. 
Blank,  believing  that  he  prefers  not  to  be  drawn  on  and  sug- 
gesting that  if  check  is  received  within  a  week,  the  draft 
will  not  be  sent  out.  This  plan  not  only  gets  the  money,  but 
it  gives  the  customer  a  more  friendly  feeling  towards  the 
credit  man  who  so  kindly  "tipped  him  off.'* 

Many  credit  men  advocate  making  the  debtor  a  proposal 
such  as  this: 


"If  you  will  Bond  flOO  by  the  lOtli  you  may  wait  until 
tb.9  20th  to  forward  tha  balance." 


But  in  adopting  this  kind  of  a  policy  it  must  be  remem- 
bered that  no  promises  should  be  made  that  you  are  not  prepared 
to  .live  up  to.  For  after  once  granting  an  exteasion  of  time  you 
cannot  well  enforce  earher  payment. 

Remember  always  that  most  men  want  to  pay  their  debt^ 
and  do  not  consider  any  man  dishonest  until  he  has  proven 
himself  so.  Many  a  collector  gets  mad  and  writes 
vitriolic  letters  to  the  delinquent.  This  may  relieve  his  feel- 
ings, but  it  doesn't  collect  the  money  very  often.  The  tact 
which  points  olit  to  a  dealer  the  desirability  of  keeping  his 
credit  good  for  the  sake  of  futiu-e  business;  the  personal  touch 
that  offers  helpful  suggestions  for  meeting  an  embarrassing 
situation — these  are  the  elements  that  make  the  collection 
letters  pull.  Do  not  resort  to  threats  of  severity  until  conditions 
absolutely  demand  them.  The  debtor  who  has  been  harried 
and  aggravated  by  the  ordinary  "give  me  my  money"  letter 
will  have  a  pleasant  surprise  if  yoii  first  show  him  a  personal 
understanding  of  his  case.  And  your  cordial  willingness  to 
be  rieasonable  will  get  your  money  while  the  man  who  resorts 
to. early  threats  waits  for  his. 


How  The  Retailer  COLLECTS 

Accounts  by  Mail 

PART  XIV COLLECTING  MONEY  BY  MAIL CHAPTER  68 

ANY  RETAILER  can  collect  money  that  is  due 
him  by  force — if  fie  is  willing  to  lose  the  customer. 
But  to  induce  his  customers  to  settle  their  hills 
loithout  antagonizing  them  and  LOSING  THEIR 
Trade  requires  TACT — tact  in  methods  of  ap- 
proaching  them  and  in  the  time  of  approaching 
them.  The  various  types  of  credit-risksy  and  the 
various  methods  of  handlina  their  accounts^  are 
described  in  this  chapter 


'O  business  can  be  conducted  by  hard  acd  fast  rules;  no 
department  reaches  its  highest  efSciency  by  following  a 
rigid  course.  Changing  .conditions  and  new  factors 
necessitate  a  policy  that  may  be  adapted  to  meet  immediate 
needs.  A  good  salesman  studies  each  possible  buyer  before 
he  makes  the  first  advance  toward  a  sale;  he  "sizes  up"  the 
man,  his  office,  his  desk,  the  furnishings,  the  decorations, 
the  way  the  man  himself  is  dressed,  his  attitude — all  these 
things  are  taken  in  at  a  glance  by  the  soUcitor  who  shapes 
his  canvass  to  fit  in  with  the  personality  of  the  prospect. 
Follow  the  methods  of  a  successful  advertiser  and  you  will 
find  him  feeling  his  way  cautiously  into  the  confidence  of 
the  class  he  wants  to  interest. 

And  this  same  policy  should  be  found  back  of  the  methods 
of  the  retail  collector.  Ask  the  successful  merchant  what 
is  the  foremost  consideration  in  making  collections  and 
he  will  probably  tell  you  that  it  is  the  mental  attitude 
of  the  customer.     While  his  first  purpose   is  to   collect   the 

118 


THREE  REASONS  FOR  ASKING  A  SETTLEVIENT  •  119 

bill,  it  is  likewise  essential  to  hold  tlie  buyer's  trade.  To 
retain  this  patronage,  it  is  necessary  to  consider  the  cus- 
tomer's attitude  towards  the  house — the  psychological  effect 
of  debts  and  duns  must  be  understood. 

There  are  two  reasons  why  the  merchant  should  aim  to 
have  accounts  settled  promptly:  in  the  first  place,  the 
house  should  have  the  money  that  rightly  belongs  to  it — 
that  is  the  only  way  to  do  business  successfully;  and  in  the 
second  place,  as  long  as  the  customer  keeps  his  account 
paid  up  he  feels  a  certain  satisfaction  in  dealing  at  the 
store.  '  He  knows  that  his  business  is  desired,  that  his  pur- 
chases will  receive  prompt  attention  and  that  he  may  depend 
upon  the  store's  best  service. 

But  if  he  gets  behind  in  his  account  he  is  likely 
to  transfer  his  patronage  to  another  store.  Every  credit 
man  knows  that  it  is  human  nature  for  debtors  to-  shua 
their  creditors.  He  knows  that  a  man,  although  he  may 
be  perfectly  honest,  feels  an  irresistible  temptation  to  cross 
over  to  the  other  side  of  the  street  when  he  sees  another 
man  whom  he  owes  five  dollars.  And  just  so  the  retail 
customer  who  is  delinquent  does  his  trading  elsewhere 
rather  than  increase  his  bill  and  run  the  risk  of  being 
turned  down.  So  it  is  not  merely  the  matter  of  getting  in 
the  money,  for  prompt  collections  keep  the  customer's  con- 
science clear  and  usually  assures  the  continuation  of  his 
patronage. 

When  it  comes  to' writing 'collection  letters,  the  credit  man 
cannot  betray  to  a  deUnquent  customer  the  slightest  suspicion 
the  account  may  not  be  paid.  It  would  be  a  great  mistake  to  make 
this  an  excuse  for  writing  to  the  delinquent.  Retail  collection 
letters  are  usually  based  upon  one  of  three  reasons  for  asking 
settlement.  First,  payment  may  be  asked  merely  as  a  matter  of 
routine — ^because  it  is  the  established  policy  of  the  store  to  require 
the  settlement  of  all  bills  at  a  certain  date,  frequently  the  tenth  of 
the  month  following  purchase.  In  the  second  place,  the  letter 
may  take  the  attitude  that  it  is  desired  simply  to  keep  the  rela- 
tions of  the  store  and  customer  straight,  and  the  delinquent  is 
asked  to  check  over  the  enclosed  statement  of  account  and 
immediately  report  il  the  store  is  in  error  on  any  of  its  charges. 
And  finally  the  position  may  be  taken  that  the  account  has 
undoubtedly  been  overlooked  and   the  letter  takes  the  form 


120     THE  THREE  CLASSES  OF  CREDIT  CUSTOMERS 

of  a  reminder.  The  class  of  customer  must  determine  the 
language  in  which  requests  for  settlement  should  be  clothed 
and  the  method  for  following  up. 

In  general,  credit  customers  fall  into  three  classes.  First  are 
the  buyers  whose  credentials  are  just  good  enough  to  allow  the 
store  to  grant  Ihem  a  charge  privilege.  This  class  is  made 
up  largely  of  working  men  whose  income  is  just  sufficient 
to  carry  them  over  the  border  line  of  safety.  These  men 
arc  generally  good  as  long  as  they  have  employment,  but 
a  definite  Umit  is  usually  placed  upon  their  monthly  credit, 
and  if  they  fail  to  come  in  *'after  pay  day,"  a  collector 
is  sent  out  or  letters  are  written  making  it  plain  that  fuiv 
ther  credit  will  be  refused  unless  their  bills  are  met 
promptly. 

Comprising  the  second  division  are  customers  of  fair  income 
and  ordinary  reliability.  In  this  class  are  listed  the  majority  of 
every  store's  credit  buyers  and  they  are  granted  any  reasonable 
concession  in  time  extension  because  their  patronage  is  one  of  the 
firm's  most  valued  assets. 

In  the  third  class  are  the  gilt-edge  risks — customers  whose 
absolute  reliabihty  is  unquestioned  and  whose  accounts  are  con- 
sidered on  the  store's  books  as  good  as  cash.  In  this  class, 
however,  there  are  frequently  a  number  who  are  extremely  slow 
pay.  Nearly  every  retailer  can  tell  of  people  who  are  living 
beyond  their  income,  and  while  they  have  the  property  back 
of  them  that  makes  them  good  pay,  "the  butcher,  the  baker,  the 
candlestick  maker"  are  frequently  stood  off  for  an  exasper- 
atingly  long  time. 

Customers  in  these  three  divisions  are  so  different  that  most 
merchants  have  a  distinct  course  of  procedure  for  each  class. 
Ordinarily,  statements  are  rendered  on  the  first  of  the  month, 
specifying  the  date  on  or  before  which  payment  is  expected.  If 
a  customer  of  the  first  class  lets  his  bill  run  a  few  days  be- 
yond this  date  a  letter  is  addressed  to  him  which  is  little 
more  than  a  brief,  courteous  request  for  a  prompt  settlement. 
If  this  does  not  bring  in  the  money,  anotlier  letter  goes  out 
ten  days  later.  This  letter  should  be  more  than  a  statement 
of  delinquency;  it  should  give  a  reason  for  asking  payment. 
While  it  should  be  very  careful  not  to  reflect  on  the  customer's 
credit,  it  may  ask  a  settlement  solely  on  the  ground  of, 
joutine  or  necessity: 


LETTERS  THAT  START  "SLOW  PAY"  CUSTOMERS    121 

Bear  Sir: 

ffe  are  surprised  and  dleappolnted  at  your  failure  to 

eettle  your  bill  amounting  to  $ regarding  which  we  wrota 

you  on  the  12th,  As  you  know,  our  terms  call  for  payment  not 
later  than  the  10th  of  the  month  following  purchases.  As  this  la 
an  estahlished  policy  we  will  thank  you  to  give  this  your  Im- 
r^diate  attention. 

Very  truly  yours. 


If  two  letters  fail  to  bring  results  or  an  explanation,  the 
third  can  take  the  attitude  of  injury  because  of  the  cus- 
tomer's discourtesy.    This  form  is  used  by  a  successful  retailer: 


Sear  Sir: 

Wo  have  twice  written  you  regarding  the  delinquent 
condition  of  your  account,  hut  In  neither  case  have  we  received 
80  much  as  a  word  In  reply.  Reluctant  as  we  are  to  helieTe  that 
you  would  deliberately  disregard  a  natter  of  this  kind,  we  still 
feel  that  you  are  not  according  us  proper  treatment,  in  view  of 
the  many  accommoda*i''.'i3  we  have  extended  to  you  in  the  past.  We 
wish  to  emphasize  the  necessity  of  settling  this  account  not 
later  than  the  25th. 

Very  truly  yours. 


The  tone  of  such  a  letter  is  calculated  not  only  to  impress  the 
customer  with  the  importance  of  conforming  to  the  store's  credit 
terms,  but  to  suggest  that  continued  neglect  may  result  in  the 
withdrawal  of  his  c'^arge  privilege.  While  this  letter  con- 
tains no  specific  warning,  it  is  usually  sufficient  to  bring 
in  the  customer  unless  he  is  a  "fly  by  night"  who  trades  up 
to  the  limit  with  one  merchant  and  then  opens  an  account  at 
some  other  store. 

Few  retailers  carry  collection  correspondence  with  this  class 
of  buyers  beyond  the  third  letter.  •  As  the  accounts  are  all 
local  it  is  much  better  to  send  a  personal  collector  to  get 
cither  the  money  or  an  explanation  of  the  delinquency.  If  a 
fourth  letter  is  used,  it  is  little  more  than  a  notification  that  the 


122       TACT  IN  HANDLING  RELL\BLE  CUSTOMERS 

store  feels  warranted  in  taking  more  drastic  measures  to  enforce 
the  payment.  Por  tiie  store's  own  protection,  it  b  usually 
advisable  to  get  busy  with  the  "big  stick"  before  the  debtor 
leaves  town — men  of  this  class  usually  move  as  soon  as  their 
credit  is  exhausted — for  men  who  do  not  respond  in  some  way 
to  the  first  three  letters  are  of  no  further  value  as  credit  customers. 
Greater  leniency  and  consideration,  however,  will  mark  the 
handhng  of  the  second  class,  the  ordinarily  reliable  customer. 
Here,  too,  a  simple  memorandum  of  delinquency  is  sent  to  the 
debtor  a  week  or  ten  days  after  the  bill  matures,  or  a  second 
statement  is  mailed  out  the  twentieth  of  the  month,  requesting 
immediate  attention.  A  great  majority  of  customers,  accustomed 
to  paying  all  bills  monthly,  need  no  further  reminder.  If  the 
second  statement  or  reminder  does  not  receive  attention,  a  letter 
should  suggest  the  necessity  of  some  response.    For  example: 

Sear  Sir: 

The  fact  that  we  have  not  receivod  a  reply  to  our  re- 
cent statementB  regarding  your  account,  forces  us  to  helleTe 
that  they  must  hare  heon  OTsrlooked.  Or,  have  you  some  particu- 
lar reason  for  delaying  payment?  Ao  you  will  note,  this  account 
is  now  considerahly  past  due,  and  whatever  the  reasons  may  ho, 
we  would  request  that  you  advise  us  just  as  soon  as  possihlo  that 
«e  may  know  definitely  what  to  depend  upon. 
Very  truly  yours. 


The  trade  of  this  class  is  always  to  be  retained  if  possible 
and  no  arbitrary  action  should  be  taken  until  the  delinquent  has 
been  given  every  opportunity  to  pay  up.  Another  letter 
should  make  clear  the  firm's  position  somewhat  in  this  manner: 


Sear  Sir: 

We  are  at  a  loss  to  understand  why  we  have  had  no  re- 
sponse to  the  various  letters  we  have  written  you  regarding  your 
account.  It  has  been  our  endeavor  to  accord  you  every  consid- 
eration and  yet  to  impress  you  with  the  importance  of  attending 
to  your  account.  You  must  appreciate  the  fact  that  n&glect  of 
this  bill  and  your  failure  to  make  any  satisfactory  explanation 
will  inevitably  reflect  adversely  on  your  credit  standing. 


THE  DANGERS  OF  LONG  LETTERS  123 

Will  you  not  give  this  matter  your  Immediate  attention. 
Bending  ue  a  remittance  that  will  oover  at  least  part  of  the 
account  If  you  are  unable  to<.B<alce  the  entire  payment  at  this 
time? 

Sxpectlng  to  hear  from  you  promptly.  I  am 

Very  elnoerely  youra. 


It  will  be  observed  that  all  of  these  letters  are  very  brief.  It 
b  a  mistake  to  make  them  otherwise.  To  go  into  details  and 
lengthy  explanations  not  only  wastes  time  but  it  is  certain  to 
detract  from  the  dignity  of  the  firm's  attitude  and  to  indicate 
anxiety  on  the  store's  part  lest  the  account  might  be  lost.  Nor  is 
there  any  use  in  addressing  more  than  four  statements  or  letters 
to  the  ordinary  debtor.  When  the  delinquency  reaches  a  point 
where  arguments  or  veiled  threats  are  necessary  to  secure  a  settle- 
ment, or  warnings  that  legal  steps  come  next,  they  can  be  made 
much  better  and  more  effective  by  a  personal  collector  than  on 
paper. 

When  a  customer's  delinquency  reaches  a  certain  point,  a 
personal  talk  in  the  credit  man's  office  or  with  the  proprietor  of 
the  store  will  accomplish  more  than  any  number  of  letters.  For 
this  reason  a  ruse  is  sometimes  employed  in  large  stores  solely  for 
the  purpose  of  getting  the  buyer  into  the  presence  of  the  credit 
man.  In  one  store  the  closed  account  scheme  is  used.  A  woman 
whose  account  is  considerably  past  due  and  who  has  failed  to 
respond  to  two  or  three  letters,  comes  in  a-nd  buys  a  small  bill  of 
goods.  The  ticket  goes  up  to  the  credit  department  and  comes 
back  with  advice  that  the  account  hns  been  closed — evidently 
at  her  request.  Immediately  she  fiies  to  indignant  protest — cue 
for  the  floor  walker's  entrance.  He  suggests  at  once  that  she  go 
personally  and  see  the  credit  man — no  doubt  there  has  been 
some  mistake — she  can  straighten  it  out. 

She  goes — and  the  credit  man  gets  the  opportunity  which  he 
wanted.  It  is  his  turn  to  protest  now — and  to  apologize.  The 
account  seemed  to  have  been  closed  two  weeks  before,  evidently 
at  her  request;  it  was  somewhat  overdue — he  had  supposed,  of 
course,  that  possibly  she  wanted  to  refrain  from  further  buying 
until  she  had  caught  up  or  that  she  had  some  other  reason,  but 
evidently  it  had  all  been  a  mistake;  it  would  be  re-opened  at 
once  and  today's  purchase  passed  through. 


yzi    IVIAKING  TlIE  "GILT  EDGED"  CUSTOMERS  PAY 

Before  the  customer  leaves  the  oflSce,  however,  she  almost  in- 
variably makes  a  definite  promise  to  pay  up  the  back  account  at 
some  specific  date — which  is  just  what  the  credit  man  wants. 
He  brings  her  to  his  oflBce,  secures  a  specific  understanding 
as  to  settlement,  and  the  memory  of  the  little  session  is  sure  to 
have  a  good  efl^ect  on  the  payment  of  future  bills. 

Application  of  the  collection  process  to  the  "good  as  gold" 
class  differs  from  that  used  on  the  second  division,  chiefly,  in  that 
almost  any  reasonable  extensions  are  granted.  •  And  when  an 
account  is  permitted  to  run  for  some  time,  five,  six,  or  even  seven 
letters  may  be  written  before  a  collector  is  sent  out  or  strenuous 
measures  are  resorted  to.  While  the  financial  ability  of  people 
in  this  class  prompts  the  store  to  be  very  liberal  with  them,  still, 
not  even  good  accounts  can  be  neglected  indefinitely  for  the 
monthly  purchases  are  usually  large  and  one  such  account  may 
involve  more  money  than  those  of  a  dozen  ordinary  customers. 
A  merchant  would  soon  have  his  entire  capital  tied  up  in  book 
accounts  if  he  neglected  such  collections  altogether. 

The  first  three  letters  to  a  gilt  edged  customer  should  be  sim- 
ilar to  those  addressed  to  the  second  class.  A  fourth,  however, 
may  ask  if  there  is  any  misunderstanding  of  the  account,  or  it 
may  request  a  partial  settlement. 

While  a  merchant  should  never  make  the  plea  that  he  is 
*  hard  up"  he  may  set  forth  some  plausible  reason  for  requesting 
an  immediate  payment,  such  as  the  making  of  extensive  improve- 
ments, building  an  addition,  establishing  a  new  department,  or 
a  desire  to  discount  his  bills  on  an  unusually  large  purchase  of 
goods.  WTiile  such  appeals  would  not  be  advisable  in  the  larger 
cities,  they  are  effective  in  the  smaller  places  and  do  not  reflect 
on  the  standing  of  the  dealer. 

In  this  class  are  many  women  who  have  no  appreciation  of  the 
necessity  of  regular  payments  and  frequently  they  are  people  of 
such  social  standing  that  they  have  no  fears  of  the  store's 
taking  radical  action  against  them.  They  are  all  perfectly  able 
to  pay  and  the  chances  are  a  thousand  to  one  they  will  pay 
eventually.  Under  the  circumstances,  the  credit  man,  or  the 
merchant,  if  he  handles  such  accounts  himself,  must  call  tact  to 
the  rescue  and  show  no  small  degree  of  patience.  Letters  are 
employed  more  as  suggestive  reminders  than  as  actual  collectors. 
By  the  time  the  average  customer  has  received  five  or  six  courte- 
ous letters,  he  h  usually  moved  to  make  some  response. 


ORG.\NIZATIONS  TILVT  RECORD  CREDIT-IUTINGS  125 

■1  .  .  II.  — — — — — ■ 

Too  much  latitude  in  the  extension  of  credit  and  too  great 
liixily  in  the  collecting  of  bills  result  in  more  failures  in, the 
mercantile  world  every  year  than  any  other  one  cause.  Retailers 
are  gradually  waking  up  to  this  fact,  and  many  are  taking  the 
stand  that  no  customer's  trade  h  so  desirable  that  it  will  pay  to 
carry  an  account  on  the  books  for  six  months  or  a  year. 
The  strenuous  competition  in  most  citieo  and  the  narrowing 
margin  of  profits  on  all  lines  of  goods,  make  it  necessary  for  the 
successful  merchant  to  look  well  to  his  collections.  This 
condition  has  led,  in  many  cities,  to  the  organization  of  business 
men's  associations  or  credit  associations  for  the  purpose  of 
disseminating  information  on  the  credit  experiences  of"  the 
different  business  men.  In  many  places,  evdry  resident  of  the 
town  13  rated,  and  the  rating  lists  are  periodically  revised.  A 
secret  code  of  letters  or  numbers  give  the  standing  of  a  citizen  as 
good  pay,  slov/  pay,  or  not  entitled  to  credit.  Such  an  organiza- 
tion prevents  a  man  from  straining  his  credit  to  the  snapping 
point  with  one  merchant  and  then  going  to  another  merchant, 
and  so  on,  until  he  has  "gotten  into"  every  dealer  in  town. 

WTiere  such  organizations  are  known  to  be  active,  there  caa 
be  no  more  effective  letter  to  the  delinquent  than  to  inform  him 
that  the  account  will  be  turned  over  to  the  association  to  handle  ia 
such  way  as  it  may  deem  bestv  In  one  town,  rubber  stamps  are 
furnished  to  the  members  to  use  on  statements,  advising  the 
recipient  that  if  the  account  is  not  settled  at  a  certain  time  it  will 
be  handled  by  the  association.  The  very  vagueness  of  this 
threat  proves  effective.  The  individual  does  not  know  what 
may  happen  to  him — he  may  be  sued,  he  may  be  blacklisted,  he 
may  be  discredited  in  the  community — and  this  uncertainty  is 
effective  when  other  means  of  collecting  accounts  have  failed. 

In  the  average-sized  town  where  the  merchants  know  their 
customers  personally,  the  collection  letter  makes  an  appeal  that 
is  specifically  aimed  at  the  delinquent,  and  in  all  cases  the  retailer 
will  strain  a  point  to  grant  accommodations  which  will  retain  the 
good  will  and  patronage  of  a  customer.  But  no  consideration  of 
future  trade  will  justify  so  much  leniency  in  the  matter  of  collec* 
tioDS  that  the  merchant's  own  credit  is  likely  to  be  affected. 


How    To    Make    INSTALMENT 

Collections 

PART  XIV COLLECTING  MONEY  BY  MAIL CHAPTER  63 

INSTALMENT  accounts  differ  from  ordinary 
accounts  in  that  *' future  business'' — that  bugaboo 
that  hangs  over  the  head  of  every  credit  man — is 
not  a  primary  consideration.  The  retail  cus- 
tomer who  makes  a  purchase  of  a  set  of  books,  for 
example,  on  the  instalment  basis,  must  be 
handled  by  methods  that  are  peculiar  to  that  class 
of  buyers,  and  must  be  followed  up  even  to  the 
POINT  OP  RE-SELLTNG  THE  GOODS,  if  necessary,  in 
order  to  meet  possible  efforts  to  postpone  payments. 
On  the  following  pages  are  illustrated  the 
methods  by  which  these  conditions  are  met 

LETTERS  written  to  collect  instalment  accounts  are 
different  from  commercial  letters  because  the  future 
busmess  is  seldom  to  be  considered.  The  sole  problem  is 
to  get  in  the  money;  retaining,  if  possible,  the  good  will  of  the 
customer.  And  to  be  a  good  instalment  collector,  one  must  be 
a  good  salesman  as  well.  For  the  easiest  way  to  get  in  the 
money  is  not  to  talk  moral  responsibility  or  legal  obligation 
but  to  re-sell  the  article — make  the  delinquent  satisfied  with  his 
purchase,  so  he  will  want  to  keep  it. 

Before  one  can  write  a  collection  letter  that  may  be  expected  to 
pull,  he  must  consider  the  appeal  to  be  made,  the  position  of  the 
man  to  whom  it  is  written — not  always  as  an  individual,  but  as  a 
class.  The  dealer,  for  instance,  is  the  chief  source  of  the  whole- 
saler's and  the  manufacturer's  business — he  always  represents 
potential  trade.  Therefore,  he  is  to  be  encouraged  and  looked 
upon  as  a  buyer,  not  as  a  debtor. 


TJNUSCAL  FEiVTURES  OF  AN  INSTALMENT         127 

The  retail  customer  occupies  a  somewhat  diflferent  position. 
To  the  retad  credit  man  the  problem  is  one  of  keeping  the 
customer  in  the  right  mental  attitude  toward  the  store;  to  get  the 
money,  of  course,  and  to  guard  against  that  tendency  to  shy, 
which  an  overgrown  account  is  certain  to  develop. 

Consider  now  the  instalment  buyer:  why  does  he  purchase 
on  small  payments?  What  is  his  frame  of  mind  toward  you, 
the  man  of  whom  he  buys  ? 

If  he  purchases  clothing,  furniture  or  other  merchandise  that 
can  ordinarily  be  obtained  at  any  retail  store,  he  is  imquestion- 
ably  buying  on  instalments  simply  because  he  has  not  the 
money  to  pay  cash.  He  comes  to  you  because  you  oflFer  him 
long-time  craiit — a  concession  he  cannot  get  elsewhere.  He  is, 
therefore,  under  more  than  the  ordinary  obligation  to  pay.  He 
is  under  a  double  obligation  to  respond  promptly  to  any 
reasonable  request  you  may  make. 

On  the  other  hand,  there  are  some  purchasers  who  buy 
articles  on  small  payments,  when  they  could  well  afford  to  pay 
cash,  because  of  the  convenience  it  affords  or  because  they  want 
the  article  to  "pay  for  itself."  In  such  cases,  the  transaction  is 
not  so  much  a  matter  of  needed  credit  as  of  obligation  assumed, 
and  the  buyer  usually  makes  his  payments  at  stated  times  accord- 
ing to  the  terms  of  his  contract. 

Collection  letters  to  any  instalment  buyer  will  appeal  either 
to  the  purchaser's  honor — his  willingness  to  recognize  Golden 
Rule  principle;  or  his  obligation  to  do  what  he  has  agreed  to 
do — to  carry  out  his  contract;  or  rekindle  his  desire  to  keep  the 
article  or  merchandise. 

Every  concern  selling  goods  on  the  instalment  plan  should 
keep  the  debtor  from  falling  behind  more  than  one  payment. 
If  the  debtor  falls  behind  two  payments,  the  account  is  just 
that  much  harder  to  collect;  and  if  three  instalments  come 
due,  it  is  necessary  to  take  some  decisive  action  in  order  to 
bring  in  the  money  before  the  debtor  gets  hopelessly  behind. 

In  no  other  class  of  collection  work  can  form  letters  be  used 
so  effectively.  This  is  because  instalment  sales  are  on  a  uni- 
form basts  and  debtors  may  be  classified,  but  there  is  danger  of 
falling  into  a  form-letter  routine  and  missing  many  collections 
that  strong,  personal  letters  would  bring  in. 

If  a  customer  does  not  make  his  payments  with  the  usual 
promptness,  a  second  statement  is  invariably  sent  him.    It  is 


128      THE  FIRST  "REMINDER"  OF  AN  INSTALMENT 

marked  "Second  Notice,"  and  if  this  does  not  bring  a  response 
within  ten  days  or  two  weeks,  a  letter  is  sent  calling  attention  to 
the  fact  that  the  account  has  probably  been  overlooked.  Usually 
emphasis  is  made  of  the  importance  of  keeping  these  instalments 
paid  up  promptly. 

One  instalment  house  uses  this  letter  for  the  first  reminder: 


Sear  Sir: 

Ve  wish  to  c&ll  your  atteotioa  to  tho  fact  that  tha 
(ayment  of  $50  on  your  aooount  is  dov  paet  due  and  *e  till  thank 
you  to  remit  this  aaouat  at  your  earliest  oonreaience. 

It  will  he  appreciated  if  you  will  eend  us  your  check 
for  the  overdue  payment  and  wa  are  euro  you  will  find  it  to  your 
advantage  to  see  that  future  installments  are  paid  promptly 
each  month. 

Very  truly  yours. 


'^/„t^»/  ^/4^4»t-5^t- 


If  a  coiurteous  letter  like  this  does  not  bring  the  money  or  a 
reply  giving  some  reason  why  the  payment  has  not  been  made,  a 
second  letter  should  be  sent  out  in  ten  or  fifteen  days;  more 
urgent  in  tone,  cautioning  the  debtor  against  the  inconvenience 
that  the  accumulation  of  instalments  may  cause,  and  bringing 
the  matter  to  a  head  by  insisting  on  payment  by  a  certain  date. 

One  house,  selling  to  business  men,  gives  the  promptness  and 
regularity  it  expects,  a  specific  application  in  this  manner: 


Xear  81r: 

You  undouhtedly.havo  our  last  letter  eomewhere  on  your 
desk  and  you  have  heen  expecting  to  send  that  check  at  the  first 
opportunity  hut  each  day  the  matter  has  slipped  your  mind.  Bow, 
let  us  make  two  requests:  Uake  a  memorandum  on  your  calendar 
pad  of  the  other  payments  so  they  wll3  cone  to  your  attention 
each  month;  and  send  us  a  check  to  cover  the  past  due  payment 
today.  Then  we  will  have  no  occasion,  to  trouble  you  with  re* 
Binders  in  the  future. 

Very  truly  youre. 


AN  UNUSUALLY  EFFECTIVE  LETTER  129 

This  short  reminder  is  usually  sufficient  for  the  business 
man  to  whom  it  is  directed.  There  is  not  the  slightest  sugges- 
tion that  the  letter  is  more  than  a  reminder  or  that  the  house  is 
beginning  to  worry  about  the  account.  Most  instalment 
houses  send  out  a  third  letter,  similar  in  tone,  but  a  little  more 
insistent,  emphasizing  the  favor  shown  in  permitting  the  pay- 
ments to  become  long  overdue,  and  appealing  to  the  custom- 
er's sense  of  honor  and  fair  play.  Here  is  an  efifective  letter  of 
this  type: 


"Certainly  it  is  moat  unusual  to  give  a  definite  pron- 
Iso  to  pay.  and  then  allow  your  instalments  to  become  long  past 
due  without  making  any  endearor  to  take  care  of  them.  We  have 
relied  upcn  your  word.  Would  it  not  be  fair  to  at  least  tell  ua 
If  there  is  ecoe  reason  why  these  payments  have  not  been  met  as 
agreed?  Kindly  let  ua  hear  from  you  immediately." 


It  is  probable  ihat  by  this  time  the  delinquent  has  replied, 
stating  his  complaint  or  giving  his  reasons  for  not  continuing  the 
payments,  and  the  collector  can  then  shape  his  letter  to  dovetail 
into  the  angles  presented  by  the  particular  case.  And  this 
should  always  be  done,  for  thousands  of  accounts  are  lost  annually 
because  customers  Vv'ho  might  have  been  coaxed  back  by  a 
personal  letter  have  been  riled  by  blunt,  or  threatening,  or  sar- 
castic form  letters.  A  great  many  collectors  have  a  uni- 
form policy  of  sending  out  two  or  three  reminders  and  then 
they  proceed  to  "put  on  the  screws." 

The  wise  collec'x>r,  upon  learning  the  cause  of  non-payment 
merely  alludes  in  the  most  indirect  way,  to  the  iron  hand;  he 
throws  himself  heart  and  soul  into  the  overcoming  of  objections 
with  arguments  and  persuasion — salesmanship.  The  indifferent 
or  dissatisfied  customer  must  be  re-sold.  The  successful  in- 
stalment houses  are  those  that  develop  just  as  much  cleverness 
in  the  collection  department  as  they  do  in  the  sales  department. 
Threats  give  way  t'-  selling  schemes  and  plans  for  re-interesting 
the  customer.  Diffcent .arguments  and  different  lines  of  ap- 
proach are  devised,  tested  and  developed  just  the  same  as 
with  selling  letters. 

A  publishing  house,  selling  a  historical  work  on  instalments, 
tries  to  answfr  fully  the  objections  that  are  made.  Here  is  a 
typical  letter; 


130      HOW  INSTALMENT  CUSTOMERS  ARE  RESOLD 

Sear  Sir: 

Your  feeling  of  disappointment  In  the  Romance  of  Anerl- 
oan  History  is  due,  I  bm   poaitlTe,  to  tho  fact  that  you  have  not 
had  time  to  read  the  books  or  look  them  over  carefully.  The 
worth  of  a  historical  work  cannot  be  appreciated  immedlately-- 
Its  value  is  cumulative.  Every  year  you  will  get  more  out  of  it 
..more  satisfaction  and  more  knowledge. 

Your  boys  will  soon  be  old  enough  to  read  these  books 
It  is  a  duty  you,  as  a  father,  owe  to  them  to  put  the  best  liter- 
ature within  their  reach.  The  elaborate  illustrations  will  in- 
terest them;  the  romance  of  American  history  will  fascinate 
them;  every  page  will  give  them  Information  about  the  develop- 
ment of  the  country's  resources,  its  industries  and  its  civlo 
in8titutiona--knowledge  that  will  be  almost  invaluable  in 
meeting  the  larger  problems  of  life. 

The  children  of  today  will  be  the  men  of  tomorrow--tho 
Importance  of  the  position  your  boys  will  occupy  will  depend  on 
the  preparation  you  give  them  and  there  is  probably  no  greater 
Influence  in  their  lives  than  the  books  they  read.  What  does 
$5  00  a  month  for  three  months  mean  to  a  man  like  yourself  when 
compared  to  the  satisfaction  you  will  have  in  knowing  that  you 
are  giving  your  boys  the  best  literature  that  money  will  buy? 

Look  over  the  table  of  contents  again,  see  the  wide 
range  of  subjects  touched  upon--8ubJect8  of  practical,  every- 
day value. 

While  we  could  force  you  to  live  up  to  your  contract  »» 
don't  want  to  do  that,  we  want  you  to  keep  these  books  because 
you  appreciate  their  worth,  not  only  toyoureeif  but  to  your 
family.  We  want  you  to  feel  glad  that  these  books  are  on  your 
table--books  that  you  will  take  satisfaction  in  loaning  to  your 
Qeighbors. 

Does  this  not  appeal  to  you?  Will  you  not  .decide  SOW 
to  keep  these  books  and  send  us  a  check  covering  the  first 
month's  payment? 

Very  truly  yours. 


Before  writing  this  letter  the  correspondenl  learned  from  the 
sale  record  that  the  buyer  was  a  lumberman  in  a  small  town — 
probably  a  man  who  did  not  care  much  for  books  of  this  charac- 
ter. The  record  showed  that  he  was  married  and  had  three 
children.  His  letter  contained  no  specific  objection — he  wasn't 
interested  in  the  books,  he  didn't  have  much  time  for  reading 
and  his  boys  weren't  old  enough  to  care  for  them.  From  this 


WHEN  INSTALMENTS  ARE  OVERDUE  131 

the  correspondent  took  his  cue;  deftly  he  wove  the  argument 
around  the  boys'  education — the  one  point  he  rightly  guessed 
would  strike  home  with  the  father.  He  cleverly  wound  up  with  a 
reminder  that  collection  could  be  forced  and  while  there  was  no 
suggestion  of  a  threat,  between  the  lines  could  be  read  a  message 
that  was  more  effective  than  a  direct  demand  to  "pay  up."  The 
letter  called  forth  an  immediate  remittance  because  it  had  been 
accurately  aimed;  it  re-sold  the  set  of  books. 

Every  instalment  house  recognizes  the  desirability  of  a 
cash-up  proposition  if  three  letters  fall  to  land  a  payment. 
Practically  all  instalment  contracts  have  the  provision  that  if 
two  instalments  become  overdue  a  firm  may  demand  either  a 
return  of  the  goods  or  payment  of  the  whole  remaining  purchase 
price.  Of  course  the  firm  prefers  to  collect  the  money,  and  so 
much  more  preferable  is  this  course,  that  to  bring  in  the  cash 
new  inducements  are  offered. 

These  inducements  may  be  either  in  the  form  of  a  cash  dis- 
count or  an  offer  of  some  additional  article  free  for  an  immediate 
settlement.  Here  is  a  letter  that  is  used  to  get  the  cash  from 
delinquents: 


Dear  Sir: 

You  have  violated  your  contract  wltn  us  and  have  failed 
to  give  our  repeated  statements,  notices  and  letters  regarding 
your  delinquent  account  tusiness-like  attention.  You  have  even 
denied  us  the  ordinary  courtesy  of  replying  to  our  communica- 
tions. Naturally,  this  would  lead  us  to  but  one  conclusion-- 
Intent  to  evade  payment  of  the  obligation. 

As  you  know,  this  is  a  binding  obligation;  but  before 
turning  it  over  to  our  legal  department  for  collection,  I  am 
going  to  mailce  one  more  effort  to  reach  an  amicable  settlement. 
I  am  going  to  make  it  to  your  advantage  to  take  care  of  this  ac- 
count right  away.  Your  balance  is  $24.   If  you  will  send  me  a 
check  covering  this  amount,  I  will  send  you  absolutely  free  (we 
will  even  pay  express  charges)  a  copy  of  the  American  Popular 
Dictionary.  This  is  a  volume  of  676  pages,  giving  the  proper 
spelling,  pronunciation  and  definition  of  more  words  than 
any  other  dictionary  of  similar  size  that  can  bo  bought  at 
any  price.   It  contains  simplified  rules  of  spelling,  a  summary 
of  the  postal  laws,  tables  of  weights  and  measures,  a  complete 
list  of  the  foreign  words  and  phrases  commonly  used  in  social 
and  business  corr83pondenoe--thirty-8even  pages  of  specific  in- 
formation which  everyone  should  have  at  hand  for  aulck  referenoo 


132  "HOME-MADE"  COLLECTION  AGENCIES 


This  book  Is  bound  in  flexible  leather  cover  and 
thousands  of  copies  have  been  sold  for  $4.50.  We  have  only  a 
few  copies  of  this  book  available  and  if  you  desire  to  take  ad- 
vantage of  this  remarkable  offer,  it  will  be  neceesary  for  you 
to  send  your  check  immediately. 

Don't  go  to  any  trouble--BiiBply  nail  your  reiittanca 
Vlth  this  letter  in  the  enclosed  envelope  and  as  soon  as  it 
reaches  my  desk,  the  book  will  be  shipped. 

Bemember  the  time  limit  on  this  offer  and  realt  now. 

Very  truly  yours. 


If  this  offer  is  not  accepted,  the  only  recourse  is  to  turn  the 
account  over  to  an  attorney  or  an  adjustment  bureau. 

Many  instalment  houses  maintain  a  collection  bureau  of 
their  own,  operating  it  under  some  impressive  name,  such  as  the 
National  Mercantile  and  Adjustment  Agency  or  the  Central 
Adjustment  and  Collection  Bureau. 

There  is  nothing  to  indicate  that  this  bureau  is  connected 
with  the  house,  and  impressive  letterheads  give  emphasis  to 
the  organization's  ability  to  collect  accounts  "where  others 
fail."  The  first  letter  sent  out  by  a  collection  agency  reads  in 
this  way- 


Sear  Sir: 

The  Johnson  Home  Purnahing  Company  of  Chicago  has 
placed  with  us  for  adjustment,  your  account  amounting  to  $48.30. 
As  we  wish  to  afford  you  an  opportunity  to  make  an  amicable  set- 
tlement, we  should  like  to  have  you  advise  us  fully  by  return 
mail  your  reasons  for  not  taking  care  of  this  obligation.  We 
judge  that  it  is  simply  an  oversight  on  your  part  and  your 
prompt  attention  will  save  both  of  us  the  embarrassment  of  hav- 
ing this  matter  taken  into  the  court. 

It  la  hoped  you  will  appreciate  this  courtesy  and  that 
this  letter  will  meet  with  a  prompt  response  in  the  way  of  a  re- 
Bittance,  or  some  definite  statemant  as  to  when  a  settlement  can 
Ise  made. 

Very  truly  yours, 

It^LL  COLLECTIHG  BUEEA'J. 


THE  MAN-TO-MAN  APPEAL  OR  THE  COURTS?     ,133 

If  no  reply  to  this  letter  is  received  within  two  weeks,  this 
second  letter  is  sent  out: 


Dear  Sir: 

We  are  surprised  that  r.o  reapcnse  has  been  received  to 
our  letter  regardinij  the  account  recently  referred  to  us  by  the 
Johnson  Hone  rurniahing  Company  for  collection. 

It  would  seem  to  us  that  you  would  think  too  much  of 
your  local  credit  standing  to  allow  this  small  item  to  be  re- 
ferred to  our  local  correspondent  in  your  city,  so  we  aro  de- 
laying the  bringing  of  suit  in  this  matter,  simply  to  give  you 
one  more  opportunity  to  arrange  for  an  amicable  ecttlcaent. 
However,  unless  some  oatisfactory  understanding  is  reached 
within  the  next  fifteen  days,  wo  will  instruct  our  attorney  in 
your  town  to  take  inmediate  actlcn  to  force  payment. 

Very  truly  youro, 

RfiLL  COLLECTIHG  rUHSAV. 


Sometimes  a  third^  letter  is  sent  out,  but  usually  v?hen  the 
correspondence  has  reached  this  stage  and  fails  to  bring  results 
the  account  is  turned  over  to  an  attorney  for  collection. 

There  are  serious  objections  to  this  course,  however,  for  at- 
torneys are  not  much  interested  in  small  collections  r.nd  an  en- 
tire follow-up  system  is  required  for  keeping  track  of  an  account. 


:::H 

'■-  THE  HAr^JLTON  COLLECTION  / 

\GENCY 

'HE- 

or"«« 

0...  .,.    ,...S.  .C^.T  „,„c.  ,0  THC  „«0..„0-tO,  O.  Ct  0«  ,H.-  ..0  » 

SCTTLI~CT».S«T    OHCt  tOV  »ltl  5«y  •  OS  T  » t  T»Oo  .i  t.  »N0  ^OUXSI  Lr  T  H  I  C> 

""'"' 

.ItOBCO.C.CI.ON. 

'""' 

ivl 

Form  used  %  a   "house"   coUeciing  agency  ai  a   last  resort   before 
bringing  suit 


134.  K\.ST  RESORT  SCHEMES 

Comparatively  little  is  collected,  because  of  exemptions,  re- 
movab  and  other  causes,  and  when  a  collecliou  is  made  the 
attorney  gets  a  large  per  cent  of  it. 

So  the  thi-eat  and  the  lawyer  are  being  discarded  by  many 
instalment  houses  in  favor  of  die  cash-up  iuducement  and  the 
re-seliing  plan.  The  fact  is  becoming  more  evident  that  if  an 
account  is  collectible  at  all,  other  means  can  be  devised, 
more  expeditious  and  more  effective  than  through  legal  steps. 

The  man-to-man  appeal  reaches  many  who  are  im- 
mime  from  the  debtor's  court  and  it  gets  action  from  those 
who  are  simply  negligent  or  "stalling"  to  keep  from  paying  the 
balance  just  as  long  as  possible. 

One  clever  collector  by  mail  has  had  remarkable  success  in 
bringing  in  the  money  on  small  accounts,  that  were  almost  hope- 
lessly delinquent,  by  an  appeal  made  on  the  basis  of  "Now 
vre  understand  each  other,  let's  be  square."  It  w  a  man-to-man 
method  that  gets  many  a  dollar  that  threats  would  never  pull. 
Here  is  one  of  his  best  letters: 


I3ec.r  Sir: 

"Huh!  Another  dunning  letter?  Those  people  needn't  Tie 
80  nervous.  Tlioy'll  fet  their  money--sometime.  " 

That's  probably  what  you  said  when  you  saw  this  letter 
But  instead  of  tossing  this  aside  for  "tomcrrow"  or  junking  it 
altogether,  just  stop  this  time  and  consider  US  for  a  moment. 

We  don't  like  to  write  dunning  letters  any  better  than 
you  like  to  get  them,  but  you  see  you  have  a  little  of  our 
inoney--$6.  That  isn't  much  and  of  course  you  intend  to  pay  it. 

But  let's  square  this  thing  up  NOW.  Don't  read  an- 
other letter  Until  you  have  wrapped  your  check  in  this  one  and 
Eailsd  it  back  in  the  enclosed  addressed  envelope.  That  will 
just  rescue  your  name  from  our  "unfair"  list  and  you  don't  know 
bow  jEuch  we  will  appreciato  it 

Very  truly  yours. 


After  all,  success  in  collecting  instalment  accounts  is  largely 
a  matter  of  understanding  your  customers  and  concentrating 
your   efforts  so  as  .to    keep   them    from  getting  behind.      It 


HOW  ONE  SUCCESSFUL  SYSTEM  WORKS  les 

is  far  more  difficult  to  collect  two  instalments  than  it  is 
one,  and  the  further  behind  a  customer  falls,  the  less  profitable 
his  purchase  becomes  to  you.  Early  persistence  is  better  than 
later  sacrifices. 

If  a  man  falls  behind  in  his  payments  it  is  not  only  harder 
for  him  to  pay  up,  but  with  each  passing  week  he  loses  his 
desire  to  go  on  with  his  contract  if  there  h  any  way  of  avoid- 
ing it.  1"he  man  who  is  satisfied  with  his  deal  will  either 
keep  up  the  payments  or  make  some  explanation  that  will 
lead  to  further  concessions  as  to  time- 
But  if  the  man  falls  behind,  get  him  to  reply  by  some  clever 
question,  get  him  to  state  his  objection  and  then  re-sell  him. 
Bring  new  selling  arguments  to  bear;  overcome  his  objection  by 
arguments,  proofs,  persuasion;  make  him  want  to  keep  the 
goods;  make  him  willing  to  continue  the  payments. 

A  mail-order  specialty  house,  selling  on  instalments  and 
allowing  a  free  trial  of  the  goods  without  an  order  deposit,  has 
worked  out  a  highly  satisfactory  collection  system.  While  this 
method  might  not  be  adaptable  to  all  businesses,  it  has  reduced 
the  collection  losses  to  a  very  small  per  cent  for  this  growing 
concern. 

At  the  expiration  date  of  the  trial,  a  letter  to  the  purchaser 
expresses  the  hope  that  the  goods  have  proved  entirely  satis- 
factory and  attention  is  called  to  tJie  fact  that  under  the  terms 
of  the  contract,  which  was  properly  signed  and  recorded,  the 
first  payment  is  now  due.  The  letter  adds  that  in  case  there 
has  been  any  delay  in  the  transportation  a  report  should  be  sent 
at  once,  so  that  an  investigation  can  be  made. 

About  a  week  before  the  second  instalment  becomes  due, 
in  case,  the  purchaser  is  still  in  default,  a  little  additional  severity 
of  tone  is  adopted.  This  second  letter  opens  with  the  statement 
that  according  to  the  terms  of  the  contract,  which  the  customer 
signed,  the  first  payment  on  the  goods  is  overdue  and  must  be 
taken  care  of  at  once.  Then,  to  make  the  urgency  of  the 
payment  a  little  more  forceful,  the  letter  adds: 


"In  fact.iyou  will  notice  ty   coneultlng  the  duplicate 
contract  you  hold,  that  the  Becond  inetalment  la  nearly  due.  And 
elnoe  thla  second  Inatalnent  date  Is  oo  close,  wo  hope  you  will 
llnd  it  convenient  to  mail  thia  payment  along  with  the  first," 


13G  FEAR  OF  NOTORIETY  BRINGS  IN  I^IONEY 

Tn  case  no  reply  is  received  to  tliis  letter  within  five  days, 
a  plain  statement  is  sent  out,  stamped  in  red  ink  "Overdue," 
and  uith  the  t}'pevvTitten  sentence  underneath: 


"Won't  you  taice  care  of  this  payment  at   once?     We  are 
balancing  our  books  at  the  present  time  and  we  want  to  check  up 
your  account. " 


Again  five  days  are  allowed  to  elapse  and  then  another 
statement  is  sent  which  also  bears  the  red-inked  stamp, 
"Overdue,"  and  in  addition  this  typewritten  sentence  at  the 
bottom: 


"Won't  you  tell  us  If  there  is  any  reason  why  you 
ehould  not  pay  this  first  iastalmont  at  once?" 


After  another  five  days  have  passed,  the  second  payment 
has  become  due  and  although  no  harsh  measures  for  collection 
have  been  hinted  at,  it  has  been  found  advisable,  at  this  point, 
to  adopt  the  "must  be  paid  noio"  attitude.  So  a  threat  is 
made  that  usually  strikes  home.  Two  schemes  for  accom- 
plishing this  have  been  tried  with  almost  equal  success.  If 
the  record  of  the  sale  indicates  that  the  customer  is  a  person  who 
might  dislike  notoriety,  this  letter  is  sent: 


"You  don't  want  to  force  us  to  wrlta  your  friends  In 
thl8  matter.  It  would  be  embarrassing  to  you.  But  we  must  know 
why  you  pay  no  attention  to  our  lett;ers---we  must  find  out  some- 
thing regarding  your  work  and  your  financial  condition,  that  wa 
may  know  just  what  the  chances  are  of  your  paying  for  the  goods 
you  bought.  You  will  compel  us  to  ask  your  references  and 
friends  to  get  this  information  unless  you  give  us  a  definita 
date  when  you  will  take  up  this  matter.  We  will  wait  five  days 
for  your  answer  before  subjecting  you  to  treatment  which  eeems 
to  us  rather  eevare,  considering  the  email  amount  of  your 
obligation. ■ 


K  no  rcplyhas  been  received  to  this  letter  the  purchaser  is 
placed  in  the  "last  resort"  class.     A  letter  of  this  kind  goes  out; 


FEAR  OF  CREDIT  LOSS  IS  STRONG  137 

"As  you  possitily  know,  wc  aro  mem'bers  of  a  Merchants' 
credit  and  Trust  Association,  which  aims  to  keep  all  merchants 
end  mail-order  houses  informed  as  to  the  credit  of  all  persons 
who  buy  goods  on  tine.  This  association  extends  everywhere-- 
even  to  the  little  stores  in  the  country.  Its  purpose  is  to  aa- 
Eure  safety  in  allowing  credit  to  any  persons  seeking  it.  By 
our  promises  to  this  association,  we  are  compelled  to  make  a 
report  on  all  persons  purchasing  goods,  and  this  places  us  in  an 
embarraBsing  position  regarding  your  case. 

"We  don't  want  to  report  your  credit  as  BAD,  and  thus 
cut  you  off  from  any  possible  credit  In  future  from  merchants  all 
ever  the  country  as  well  as  from  mail-order  hou3es--'because  your 
account  is  too  small  to  warrant  such  a  disastrous  course.  Ec- 
sides.  we  feel  that  perhaps  it  is  not  a  lack  of  willingness  on 
your  part  to  pay,  hut  rather  some  extenuating  circumstances  that 
make  it  impossible,  temporarily,  for  you  to  handle  the  account. 
By  your  failure  to  answer  any  of  our  letters,  you  are  simply 
compelling  us  to  make  this  report,  while  in  reality  you  probably 
are  willing  to  pay  as  soon  as  you  aro  better  fixed  financially. 
So  we  are  inclined  to  wait  a  few  days — to  hold  the  report  over 
until  the  12th,  believing  that  you  will  tell  ua  Just  what  the 
trouble  ie  rather  than  force  us  to  take  this  steD." 


If  no  reply  to  this  letter  is  received  it  is  safe  to  assume  that 
llie  custoraer  needs  tracing,  for  if  a  man  is  stalling  he  will  fix; 
up  some  excuse  tc  offer,  for  by  so  doing— which  is  what  ha 
wants,  he  plays  for  time. 

A  second  method  is  used  where  the  sale  record  indicates 
that  a  reference  to  legal  steps  might  strike  the  delinquent 
with  fear. 

After  the  second  instalment  has  lapsed  for  some  time- 
long  enough  to  indicate  that  the  purchaser  h  not  desirable  as  a 
customer,  so  the  only  thought  is  to  get  in  the  money,  a  letter 
of  this  nature  is  mailed: 


"776  don't  want  to  adopt  stringent  measures  to  collect 
thla  small  account--we  don'-i  want  to  put  It  in  the  hands  of  the 
legal  department,  unless  you  force  ua  to  do  it.  But  that  la  Just 
what  you  are  going  to  do,  unless  you  answer  our  letters  and 
tell  us  what  the  trouble  is  within  the  next  ten  days. " 


When  this  letter  fails  to  get  the  reply,  a  letter  written  on  the 
stationery  of  the  Legal  Department  is  sent  out  bearing  the 
simple  statement: 


138  LAST  RESORT  MEASURES 

"Your  account  haa  been  placed  in  our  hands  for  collec- 
tion. As  you  muat  know,  it  ia  Just  sa  disagreeable  to  us  as  It  l3 
to  you  to  force  a  settlement.  So  we  want  to  avoid  harsh  methods 
until  wo  are  absolutely  satisfied  thtt  you  are  unwilling  to  pay. 
If  there  is  any  reason  for  not  closing  this  account  at  once,  wo 
will  expect  you  to  tell  us  within  the  next  eight  days." 


Failure  to  get  an  answer  to  this  letter  Is  taken  as  e\idence 
that  last  resort  measures  must  be  adopted.  So  the  next  letter 
aims  to  strike  fear  to  the  purchaser's  mind  from  a  different 
angle.  Extreme  tact  is  essential  to  the  wording  that  goes  into  it. 
Here  is  one  that  has  been  used  to  good  effect: 


"lou  aust  know  the  Government  lawa  regarding  the  uao  of 
the  Bails  for  fraudulent  purposes.  The  government  accepts  na 
'ifo'  or  'ands'  as  an  excuse — it  punishes  where  Justice 
should  he  dealt.  Mo  man  can  expect  to  violate  the  federal  laws 
without  suffering  the  consequences.  We  have  your  signature  on 
the  returned  duplicate  of  invoice — It  is  regular.  Our  aide  of 
the  sale  has  teen  straightforward  end  honorable.  Can  you  say  aa 
much?  What  do  you  think  the  sicned  invoice,  we  hold,  must  indi- 
cate to  us?  We'll  tell  you.  It  Indicates  an  evident  Intention 
to  obtain  goods  under  false  pretenses  through  the  use  of  the ' 
United  States  mails.    This  ia  a  penitentiary  offense.  While  we 
feel  that  to  pursue  the  course  laid  out  for  us  on  such  a  small 
account  would  be  harsh--lnasmuch  as  there  may  be  some  alstake-- 
you  will  force  us  to  coianenco  an  inveatlgation.  Unless  we  hear 
from  you  within  the  next  atx  days  we  will  be  compelleii  to  start 
the  machinery  of  investigation." 


In  case  the  account  b  large  enough  to.  warrant  it,  this  in- 
vestigation is  actually  started  after  a  reasonable  lapse  of  time, 
since  it  is  safe  to  assume,  that  you  are  dealing  with  an  unre- 
sponsible person  who  is  immune  to  ordinary  threats.  But  the 
purpose  of  this  entire  series  of  letters  is  to  approach  the  de- 
linquent from  different  angles,  one  of  which  is  likely  to  touch  a 
tender  spot,  and  experience  shows  that  most  men  can  be  worked 
in  this  way.  The  justness  of  the  debt  and  the  uncertainty  of 
the  consequences  if  the  threats  are  carried  out  brings  most  de- 
linquents scurrying  to  cover. 


How  Petty  Accounts 

are  Collected 

PART  XIV COLLECTING  MONEY  BY  MAIL CH.'UPTER  ft4 

THE  SMALL  ACCOUNT  that  becomes  over- 
due is  a  common  form  of  annoyance  and  often  of 
actual  loss  to  the  house.  The  time  and  Tncmcy 
spent  in  forcing  a  delinquent  to  fay  mai^  eat 
wp  the  'profits  of  several  good  accounts,  and  it  not 
infrequently  loses  a  good  customer.  In  order 
to  handle  these  petty  accounts  profitably^  the 
manner  of  collecting  them  must  be  REDUCED  TO 
A  MATTER  OP  ROUTINE  that  requires  the  mini- 
mum of  effort  and  expense.  How  to  do  this, 
yet  to  give  each  colleciion  letter  the  appearance 
o/"  a  SPECIAL  and  PERSONAL  CO^IMUlTfCATION  that 
18  not  offensive,  is  the  aim  of  the  shrewd  credit 
Tiian  and  collection  manager 


TRI\TAL  accounts,  accounts  too  small  to  receive  more  than 
the  merest  routine  attention,  are  often  the  cemetery  for 
profits.    These  accounts  are  peculiar  to  certa-in  lines  of 
business  and  present  a  perplexing  problem,  for  the  time  required 
to  collect  one  account   personally  will  frequently  wipe  out 
the  profits  of  half  a  dozen  other  accounts. 

Many  houses  nominally  doing  a  cash  business  are  compelled, 
as  a  matter  of  occasional  courtesy  to  patrons,  to  charge  little 
items  on  tlie.  will-pay-in-a-day-or-two  basis.  Other  houses, 
such  as  music  stores,  make  a  regular  practice  of  charging  small 
items,  like  sheet  music, ^purely  as  a  matter  of  accommodation. 
A  good  many  Dewspapers  and  magazines  find  it  profitable  to  bill 


140 


A  SERIES  OF  COLLECTION  LETTERS 


LETTER  NO.  1 


Uy  Dear  Sir- 

You  ■111  find  encloood  a  s'.alo- 
aent  of  account  ehowtns  balanca  of 
tlO  dua  u« 

In  dealing  direct  with  tha 
•  aoker  tho  accounts  are  nocoasarUy 
eaall  and  of  great  number,  and  I  can- 
not thareforo  afford  to  be  at  euch 
•ipenae  for  collection   I  hope  you 
■111  take  thla  Into  conalderat Ion  and 
that  It  »lll  bo  conTonUnt  for  you  to 
nelie  ce  an  Immediate  reolttance  cot- 
•rlng  thlg  eoall  anount. 

I  rot  only  »lsh  to  oa^e  ityaalf 
tl:o  trouble  of  for»srair.!!  another 
Btatcncnt.  but  I  ao  quite  aa  annloua 
to  BOTe  you  tho  annoyance  of  receiv- 
ing another  rocilndar- 


Slncerely  your 


i^t-^c:?^?. 


LETTER  NO    2 

Uy  Dear  Sir 

I  ao  enclosing  another  atate- 
oent  ahoirlna  a  balance  of  JlO  In  my 
faTor   I  belleie  you  ha>e  been  urgeA 
once  or  twice  ))efore  for  pays^nt  on 
thla  account,  and  I  do  not  write  ttal* 
letter  so  much  to  urge  you  again  for 
ptiycieBt  as  1  do  In  hopes  that  we  oay 
arrlTs  at  an  adjustment  ct   the  ac- 
count, which  will  save  both  you  and 
ffls  further  annoyanca  in  auch  a  saalX 
matter. 

1  aa  putting  ny   cigarettes 
upon  the  market  strictly  upon  honor, 
ond  depend  upon  their  being  so  good 
that  CTeryooe  who  geta  them  will  want 
to  pay  for  thea   If  this  19  not  tV\o 
feeling  In  your  caao.  however,  ond 
you  will  write  OS  a  llnp  staling  that 
you  do  not  wlat  to  pay  the  account.  I 
will  cross  It  off  with  perfect  good 
win.  but  of  courae  I  would  rather 


SlDcerely  yo 


hU^Tf 


■ ( 

LETTER  NO.  3          i 

Ky  rear  Sir:                        j 

I  hops  that  the  soda  will  h-t 

pro 

?ltSouo  when  you  open  thla  letter 

and 

that  the  warm  opot.  which  I  know 

la 

n  your  heart,  will  Induce  you  to     ( 

wrl 

uS  your  nana  at  tho  bottom  of  ths     j 

er.e 

oeed  slip,  and  fill  In  tho  namo     j 

of  your  bank  above,  or  eloo  ooni  laa      [ 

ton 

3  other  form  of  parchment  that 

wi; 

I  be  eciually  negotiable. 

Beally,  I  am  afraid  If  you       j 

«on 

t  pay  thla  cuaount  Tory  noon,  you     j 

will  forget  bow  good  the  ■omoie"  nau,    j 

and 

how  much  you  enjoyed  It.  Ihera 

wor 

i   135  of  those  little  eaokes  you 

kno 

»,  and  every  single  one  of  then 

mus 

I   have  brought  you  eomo  o^Joytcnt. 

Jus 

I  think  of  lt--125  times  ocao  cu- 

Jcyoent. what  a   lot  of  Joy.   I  don't     j 

know  after  all  whether  $10  will  pny             ( 

for 

lt  all  or  not,  but  send  alohz  t:io    1 

JlO 

tnysay.                         ! 

Clnoerely  youra. 

^i^^-fV-J'^ 

LETTER  NO.  4 


Ky  Dear  Blr: 

Z  wleh  to  express  to  you  cy 
deepest  sympathy  In  your  trouble,  t 
suppOBO  there  ar*  a  few  fortunata 
people  who  go  through  life  without 
getting  "up  against' It ,*  but  I  as  not 
one  of  those,  and  thsreforal  can 
I'ully  appreclata  your  unfortunat9 
situation. 

There  are  many  klrtda  of 
trouble,  but  It  would  be  hard  to 
Icifiglne  anything  much  worse  th.tn  Ina- 
tlllty  to  pay  a  smoke  bill  of  $10. 


Sin 


ely  yo 


hUv.H-f '4^.cJ^ 


A  mail-ordsr  firm,  selling  cigars  on  credit,  finds  feto  customers  wJio  cannot 
be  readied  by  one  of  these  letters 


AN  INFORMAL  REMINDER  141 

subscriptions  on  trial,  and  news  dealers  conduct  a  business  that 
is  made  up  entirely  of  petty  accounts  that  are  payable  monthly. 
Then  thcie  are  the  telephone  companies  collecting  their  rentals 
monthly.  Newspapers  that  accept  classified  advertisements  by 
telephone  or  by  mail  also. have  a  petty  account  problem  to  deal 
with  and  nearly  all  drug  stores  and  retail  merchants  have  some 
petty  accounts  on  their  books — accommodation  business  on 
which  the  small  margin  of  profit  necessitates  bringing  in  col- 
lections at  the  minimum  expenditure. 

All  of  these  accounts  are  alike  in  three  things :  first,  the  debtor 
generally  forgets  all  £:,bout  the  bill  or  he  neglects  to  pay  it 
because  of  its  very  triviality;  second,  this  forgetfulness  or  neglect, 
usually,  is  the  sole  obstacle  in  the  way  of  collection;  and  third, 
the  collection  "attack"  must  be  right  at  the  point — ^getting  the 
customer  to  act  at  once — to  pay  in  cash  instead  of  good  in- 
tentions. 

The  first  letter  must  be  a  reminder,  nothing  more,  but  giving 
enough  of  the  details  of  the  transaction  to  brizig  it  back  clearly 
to  the  mind  of  the  customer  so  as  to  get  the  xncney  withoutany 
delay  or  expense  for  explanation.  Frequently  a  regular  bill  is 
sent  giving  sufhcient  data  to  bring  all  the  facts  regarding  the 
transaction  to  the  mind  of  the  customer. 

A  music  house  in  Nashville  brings  an  account  to  the  atten- 
tion of  the  customer  in  an  eflfective  way  with  tJiis  informal 
note: 


"Unless  you  are  lilrely  to  tie  in  the  store  in  the  next 
day  or  two,  will  you  send  our  cashier  check  or  currency  for  $__ 
to  talce  care  of  the  little  charge  of  sheet  music  vrhioh  you  pur- 
chased the  other  da;'?" 


There  is  none  of  the  jar  of  a  typical  collection  letter  about  this 
note — it  is  more  of  an  appeal  for  a  reciprocation  of  courtesy 
extended:  we  extended  a  courtesy  to  you  in  charging  this  little 
purchase,  will  you  not  now  extend  a.  courtesy  to  us  by  sending 
over  the  money  right  away? 

First  letters,  while  maintaining  the  cordial  tone  necessary 
toward  desirable  trade,  invariably  fix  a  shoii;  time  limit  for 
payment,  fixing  attention  on  the  necessity  for  immediate 
aciioiv 


142  FINDING  AN  UNUSUAL  APPROACH 

Following  the  first  letter  or  statement,  a  second  statement  is 
frequently  mailed  out  on  which  is  printed  or  stamped  in  red  ink 
an  attention-getting  notice: 


AST  DUE! 

This  account  has,no  douht,escaped 
your  notice.  Please  favor  tis  with 
a  remittance  by  return  nuiil  ? 


Another  music  house  in  an  Ohio  city  asks  every  customer 
£o  put  his  initials  on  sales  checks  where  the  goods  are  not 
paid  for  at  the  counter,  and  then  uses  this  as  a  lever  for  prompt 
collection: 


"The  I.  0.  U.  Which  you  gave  us  to  cover  your  purcnaee 
cf  yesterday  is  held  by  our  cashier.   You  may  redeem  this  at 
your  conver.ienoe  any  tine  before  next  Saturday. 

"We  carry  no  charge  accounts  but  are  always  glad  to  de« 
ilver  email  itame  on  memorandum,  asking  only  that  they  be  ta):en 
care  of  before  the  next  week-end. " 


Offense  cannot  be  taken  at  this  procedure  and  yet  it  impresses 
upon  the  cusLomer  in  a  very  vivid  way  a  sm^il  obligation  that 
he  might  otherwise  neglect. 

Such  a  letter  as  this  is  used  only  by  houses  doing  essentially 
a  cash  business.  With  concerns  that  mal'.e  a  practice  of  charging 
purchases,  the  collection  approach  must  be  different,  but  still 
turn  on  some  suggestion  for  immediate  pajTuent.  A  book  pub- 
lisher who  sells  a  $2.00  book  on  a  five  days'  approval  basis, 
writes: 


Dear  Sir. 

The  five  days  agreed  upon  for  the  examination  of  the 
Mechanic's  Hand  Book  have  gone  by  and  we  know  without  even  asking 
that  the  book  has  already  made  itself  almost  Indispensable  to 
you. 


W:aY  SMALL  ACCOUNTS  ARE  TROUBLESOME       143 

will  you  DOT  oloao  the  traas&otlon  ty  remitting  the 
$2.00  In  whatever  form  la  aOat  oonvenlent  for  you? 

Fold  a  92.00  hill  In  this  ah'eet  If  you  like  and' mall  It 
tack  In  the  addreaaed  envelope  enolo8fid--va  vlll  take  the  risk 
of  loss  If  It  la  Balled  at  onoe. 

Very  truly  youra. 


These  letters  are  all  short — an  essential  quality  not  only  in 
first  letters  but  in  all  the  letters  of  a  series  intended  to  collect 
accounts  of  thb  character.  Anyone  who  has  a  trivial  pur- 
chase charged,  resents  having  it  treated  as  a  serious  matter, 
so  thai  a  short,  crisp  note  making  the  one  point  of  "pay 
Qow*'  is  essential. 

One  Chicago  house,  which  handles  a  large  nimiber  of  petty 
accounts,  combines  the  idea  of  novelty  with  that  other  ele- 
ment of  appeal — the  "you"  element.    This  second  letter  runs: 


Sear  Sir: 

You  douhtloas  have  our  laet  letter  on  your  desk  aoao- 
where  expecting  to  give  it  attention  as  soon  as  you  havo  a 
moment  to  spare. 

iTe  certainly  do  not  7l4h  to  seem  unduly  insistent  ahout 
80  small  &  matter  as  this  little  aooount  but  you,  as  a  hualness 
man,  will  readily  appreciate  OUR  position.  If  we  are  called  upon 
to  spend  even  postage  to  collect  each  of  these  small  hills.  It 
really  works  a  hardship  upon  us.  Therefore  we  ask  you  to  send 
us  TODAY  check  or  currency  for  the  a"oovo  amount. 

We  know  you  will  cheerfully  comply  with  )t^i8  request 
and  then  we.  sh&ll  not  have  to  trouble  you  again  with  remindera. 

Very  truly  yours. 


At  the  head  of  this  form  letter  is  a  space  for  the  amount  of 
the  bill,  which  makes  the  letter  very  easy  to  fill  in. 

The  third  letter  on  these  accounts  is  bound  to  assume  a  tone 
of  greater  seriousness.  In  fact,  it  must  make  plain  that  the 
creditor  has  a  grievance  against  the  debtor  for  not  having 
paid  attention  to  the^preccding  two  reminders. 


144  THE  SECOND  AND  THIRD  FOLLOW-UPS 

Men  who  have  been  successful  in  collecting  these  petty 
accounts  agree  thcat  the  stereotyped  formal  note  asking  for 
payment  is  not  eflfectivc.  So  the  collector  must  seek  for  original- 
ity; he  must  cudgel  his  brain  to  find  new  avenues  of  approach, 
new  phrases  for  his  appeal.  In  the  second  letter  it  is  espe- 
cially desirable  to  introduce  the  element  of  novelty.  If  an  ac- 
count has  been  neglected  for  several  weeks,  a  dry  reminder  that 
"you  haven't  paid  yet"  is  not  likely  to  extract  the  money. 

One  firm  combines  a  statement  of  its  grievance  and  a 
review  of  the  facts  in  connection  with  the  account,  so  that 
there  may  be  no  possible  misunderstanding  in  the  mind  of 
the  customer  of  exactly  what  the  account  is  for  and  why 
it  should  be  paid  without  further  delay.     This  letter  reads: 

Dear  Sir: 

We  have  twice  reminded  you  ae  politely  aa  wo  know  how 
Of  your  account  amounting  to  $7.50. 

Do  you  not  think  it  l3  rather  unfair  to  cause  us  to 
write  several  letters  in  order  to  collect  this  trivial  l}.ttle 
1)111.  especially  in  view  of  these  facta: 

1.  We  delivered  these  goods  to  you  at  your  store  with- 

out payment  as  a  matter  of  especial  accoEimo- 
dation  to  you. 

2.  You  ^ero  at  perfect  liherty  to  return  the  goods 

and  have  the  charge  canceled  had  you  so 
desired. 

3.  You  have  not  returned  the  goods  or  Indicated  any 

question  as  to  the  correctness  of  the  charge, 
and, 

4.  We  naturally  expect  accommodation  charges  like 

this  paid  promptly  upon  request.   Certainly 
we  do  not  anticipate  having  to  write  three 
letters  to  obtain  settlement. 

We  fully  appreciate  that  this  item  is  very  inconEe- 
Ouential  from  your  point  of  view,  hut  it  would  really  help  we 
greatly  if  you  would  dispose  of  it  now  hy  a  procpt  renittanoe, 
not  hecause  of  the  amount  involved  so  much  as  the  handling 
Vblch  each  one  of  the'se  email  accounts  require. 

Very  truly  yours. 


SCHEMES  THAT  BRING  IN  THE  CASH  145 

The  last  paragraph  is  intended  to  relieve,  somewhat,  the 
smart  left  by  the  sting  of  criticism.  The  letter  usually  ends 
with  a  request  for  a  check  before  the  end  of  the  week. 

If  a  fourth  letter  is  used  it  must  contain  a  mild  threat  that 
the  next  step  is  to  turn  the  account  over  to  a  collection  agency,  or 
something  of  that  kind. 

This  note  may  be  a  very  short  one,  or  it  may  dwell 
at  aoine  length  on  the  regret  experienced  in  having  to 
enforce  payment  of  such  a  trivial  account.  Usually  every 
firm  has  an  established  policy  regarding  this  fourth  letter  ac- 
cording to  the  nature  of  its  business. 

Unless  it  is  the  intention  to  turn  the  account  over  to  a  col- 
lection Rgency,  it  is  best  to  frame  the  fourth  and  final  appeal  in 
a  pcrsii olive  tone  rather  than  as  a  final  demand. 

One  house  uses  this    persuasive  appeal  in  its  fourth  letter: 


Dear  Sir: 

You  don't  like  to  get  dunning  letters. 

Ve   don't  like  to  write  them. 

Already  wc  have  written  you  three  times  regarding  this 
little  account  of  $7.50.   That's  too  mr.ch,  isn't  it?  Too  nuoh. 
bother  for  you  over  such  a  trifle--too  much  bother  for  us  to  get 
what  belongs  to  us. 

Of  course,  you  are  going  to  pay  this  amount  soon--but 
if  you  please,  we'll  take  the  money  now  as  it's  past  due. 

Sow,  do  the  square  thing.  Don't  let  this  sheet  out  of 
your  hands  until  you  wrap  your  check  in  it  and  mail  it  back  in 
the  enclosed  addressed  envelope,  so  that  we  will  not  be  put  to 
the  unpleasant  necessity  of  cutting  you  from  our  list  of  those 
wb.0  are  entitled  to  credit  accommodations. 


Very  truly  yours. 


Many  firms,  whose  business  is  made  up  largely  of  small 
accounts,  find  it  necessary  at  times    to  wield  the  "big  stick." 

One  of  the  effective  ways  is  to  send  out  letters  written  on 
the  stationery  of  their  own  lawyer  or  in  the  name  of  a  house 
collection  agency,  as  previously  described. 


I4G  ^VIELDING  THE  'BIG  STICK' 

Some  concerns  feel  tliat  this  course  is  undignified  but  many 
of  the  largest  newspapers,  telephone  companies  and  news  dealers 
in  the  country  maintain  adjustment  bureaus  for  this  purpose. 

Collection  managers  are  always  seeking  some  scheme 
for  handling  these  accounts  without  the  necessity  of  filling  in  ancf 
addressing  individual  form  letters.  An  eastern  publisher  has 
devised  a  series  of  collection  slips  which  are  used  in  the  collection 
of  subscription  accounts.  These  slips  of  paper  are  of  uniform 
size,  made  to  fit  an  outlook  envelope.  They  are  gotten  up  in 
rather  attractive  style  so  as  to  be  pleasing  to  the  eye.  The  whole 
series  may  be  filled  in  by  carbon  copy  process  immediately 
after  the  order  is  entered.  This  publisher  writes  the  name  and 
address  and  the  amount  of  the  bill  on  the  five  collection  slips, 
which  constitute  the  series,  at  the  time  he  makes  out  the  bill. 
Each  slip  contains  a  distinct  collection  appeal  and  the  results  the 
publisher  has  obtained  from  tliis  method  of  collection  are  fully 
as  satisfactory  as  the  more  individual  appeal  contained  in  the 
form  letter  and  it  is  a  much  less  expensive  method  of  handling 
the  business. 

This  publisher's  collection  manager  has  come  to  the  conclu- 
sion that  the  form  letter  is  nowso  generally  known  and  recognized, 
not  only  by  men  in  business  but  by  everyone  else,  that  its  old  time 
force  as  a  dictated  communication  is  practically  lost;  and  he  has 
found  that  -whatever  advantage  there  may  be  in  this  factor 
is  more  than  offset  by  the  novelty  of  the  scheme  which  he  uses, 
and  the  appeal  of  the  novelty  itself  on  the  minds  of  the  debt- 
ors. Everyone  likes  a  good  scheme — a  new  idea — and  this 
is  recognized  as  such.  The  larjje  returns  from  these  collec- 
tion  slips  are  perhaps  as  much  an  expression  of  appreciation  of 
the  scheme  itself  as  a  response  to  the  request  for  payment. 

Just  as  a  good  salesman  is  forever  searching  for  new  schemes, 
new  ideas,  new  angles  of  approach,  just  so  the  collection  manager 
"sweats  blood"  in  trying  to  think  up  new  schemes  for  bringing 
in  the  money.  Persuasion  is  effective  when  given  a  new  angle. 
The  element  of  novelty  is  an  account-saver.  Schemes,  new 
ideas,  new  methods^  of  approach,  new  appeals — these  are  the 
vehicles  that  bring  in  the  money  and  retain  the  good  will  of 
the  customer. 


Collection    SCHEMES   for   Use 
When  Other  Methods  Fail 

PART  XiV COLLECTING  MONEY  BY  MAIL  CHAPTl^R  r>5 

THE  USUAL  methods  of  inducing  delijiquent 
customers  to  ''pay  up''  sometimes  fail.  In  such 
cases  the  collector  must  resort  to  exceptional 
tactics;  he  must  use  whatever  weapons  the 
exigencies  of  the  occasion  demand.  But  he 
must  never  lose  sight  of  the  main  object  of  his 
activities — to  Collect  the  Cash.  The  very  nov- 
elty of  his  plan  of  attack  often  wins  out  when 
other  schemes  prove  ineffectual.  Here  are  FIF- 
TEEN SCHEMES  that  are  employed  by  some 
of  the  cleverest  collectors  in  the  busiiiess 

TIMES  come  in  every  credit  man's  experience  when  the 
old  methods  fail.  Hard-shelled  debtors  manage  to  pass 
every  guard  of  precaution,  and  set  themselves  down  with 
seeming  immovability  upon  the  firm's  boolcs.  Chronic  de- 
Knquents  manage  to  get  past  the  border-line  of  credit.  They 
are  proof  against  all  ordinary  collection  methods.  Trained  upon 
them,  statements  and  second  notices  fall  without  effect.  The 
cleverest   letters  lose  their  pulling  power. 

Such  debtors  must  be  grouped  into  a  class  by  themselves. 
They  are  subjects  for  the  credit  man's  ingenuity.  And  it  is  for 
these  that  unusual  collection  schemes  must  be  devised. 

Every  credit  man  knov/s  this  situation,  whether  his  business 
is  wholesale  or  retail,  and  the  conditions  are  the  same  in  the 
regular  mercantile  establishments  and  in  the  instalment  houses. 

These  schemes  have  bepn  used  successfully  and  will  offer 
suggestions  to  every  collector.    If  the  debtor  is  remotely  located, 

U7 


148       USING  THE  ^YIRE  TO  HURRY  COLLECTIONS 

it  is  often  possible  to  get  results  by  deserting  the  mails  and  turn- 
ing to  the  more  speedy  and  urgent  ways  of  communication. 

SCHEME  1— A  LON'G-DISTANXE  TELEPHONE  TALK 

A  St.  Paul  wholdsaler  had  written  two  or  three  letters  to  a 
merchant  in  another  state  who  owed  the  house  $4iOO.OO.  The 
debtor  replied  with  glowing  promises  to  pay,  but  persistently  neg- 
lected to  name  a  date.  Then  the  credit  man  resorted  to  the  wire. 
Atfifty  cents  a  minute,  he  got  the  merchant  into  the  telephone 
booth  and  talked  to  him  in  heart-to-heart  fashion.  He  told 
him  that  the  house  was  under  heavy  expense  at  the  time  and 
simply  wanted  to  know  when  it  could  count  on  his  check. 

Consistency  with  his  letters  compelled  the  merchant  to  be 
courteous  and  the  novel  effect  of  a  three-hundred-mile  call  on 
the  wire  prompted  him  to  make  up  his  mind  quickly.  Settle- 
ment was  promised  in  tea  days.  Better  than  his  word,  he  had, 
a  check  on  the  credit  man's  desk  less  than  a  week  later. 

The  'phone  call  had  given  the  collection  efforts  that  personal 
contact  tliat  the  letters  had  almost  reached,  but  not  quite.  Like 
the  quick  trip  for  a  personal  conference  that  lands  so  many 
lagging  but  good-intentioned  debtors,  the  long  distance  wire  is  a 
net  that  will  pull  in  tardy  payers  when  the  best  of  letters  fail. 

SCHEME  2— USING  THE  LETTERGRAM.  AS  A  FOLLOW-UP 

Since  the  "night  letter"  service  went  into  effect,  at  least  one 
wholesaler  has  used  it  in  his  collection  work.  One  cannot  open- 
ly dun  a  customer  by  wire,  for  it  is  illegal  under  the  blackmail 
laws  to  give  publicity  to  a  buyer's  indebtedness.  But  this  dealer 
uses  the  wire  most  effectively  as  a  follow-up. 

A  customer  ordered  a  bill  of  seasonable  goods,  ignoring  a 
back  account.  The  v/holesaler  knew  the  dealer  was  in  a  rush 
and  so  used  the  oi-der  as  a  lever  and  telegraphed  him: 

"T?hen  office  closed  tonight,  no  reply  had  tieen  received 
to  our  letter  of  the  eighth,  asking  for  a  settlement  of  your  ac- 
count. Has  check  heen  mailed?  Your  rush  order  is  ready  in  the 
ohipping  department,  hut  we  feel  we  cannot  let  it  go  forward 
L'ntil  this  matter  has  been  adjusted.   If  you  have  mailed  chock, 
please  wire  us  collect  eo  goods  can  go  forward  tomorrow.  " 


L.\ST  DISCOUNT  DAY  REMINDERS  14D 

Such  a  telegram  as  this  is  permissible,  because  it  really 
asks  regarding  the  account  only  as  a  matter  of  informa- 
tion.. From  the  merchant,  who  is  anxiously  awaiting  his 
goods,  it  is  practically  certain  to  secure  at  least  a  partial 
remittance. 

SCHEME  3— RIVETING  ATTENTION  ON  LAST  DISCOUNT  DAY 

In  cases  where  a  special  discount  is  allowed  for  payment 
within,  say,  thirty  days,  it  is  a  good  plan  to  remind  the  customer 
a  day  or  so  ahead  of  the  date  when  this  discount  period  expires. 
One  firm  makes  a  very  clever  use  of  a  telegram  in  this  connection. 
On  each  customer's  bill  is  printed  in  red  ink  a  statement  to  the 
effect  that  if  it  is  paid  by  a  certain  date — thirty  days  from  the 
date  the  goods  were  supplied — that  a  special  discount  of  two  and 
a  half  per  cent  will  be  allowed  him.  Suppose  this  discount 
period  expires  on  December  15th.  On  the  morning  of  De- 
cember 14th,  the  customer  will  receive  a  telegmm  worded: 


Today  is  the  last  day  for  discount  on  Hovem'ber  account. 

JAMK3  JOHIiSOU  &   CO. 

This  acts  as  a  strong  reminder  to  the  customer  and  impresses 
upon  him  the  necessity  of  sending  the  check  the  day  the  telegram 
is  received. 

The  plan  takes  into  consideration  the  fact  that,  when 
the  average  man  receives  a  routine  statement  or  a  request 
for  payment  of  a  bill,  he  puts  it  aside  for  further  attention  and 
in  many  cases  it  gets  mislaid  and  is  forgotten. 

The  telegram  scheme  guards  against  this — it  demands  im- 
mediate attention,  and  usually  gets  it.  The  customer  has  no 
excuse  to  say,  *'I  intended  to  take  the  discount  but  forgot 
when  it  was  due." 

SCHEME  4— A  CALENDAR  PAD  "REMINDER" 

A  more  gentle,  but  highly  suggestive,  scheme  is  used 
systematically  by  an  eastern  hat  manufacturer.  A  week  or 
ten  days  before  a  bill  'n  due  the  credit  man  sends  the  customer  a 


150  pro:mises  tiiat  coinie  back  home 

card  printed  in  facsimile  of  a  leaf  from  a  desk  calendar 
pad.  The  large  figure  on  it,  representing  the  day  of  the 
month,  shows  the  date  the  bill  is  due.  In  the  blank  space 
belpw  is  printed  in  imitation  of  handwriting  a  memorandum, 
so  that  the  leaf  reads: 


AUGUST    iO 

/^^ry.^c  ^^^^  -^..^  ^^  ^'f 


SCHEME  5— QUOTING  FROM  CUSTOMERS'  LETTERS 

A  somewhat  similar  scheme  is  used  on  the  sensitive 
debtor.  One  firm  often  collects  the  number  of  promises 
that  a  debtor  has  made  in  letters  written  to  the  house,  and 
arranges  them  in  one,  two,  three  order  on  an  attractive  card 
as  follows: 


John  Black  &  Company, 

Hughesville.  U.  Y.  , 

PROMISED 
Blank,  Blank  &  Sona  on-- 
Uay  I0th--"W1H  remit  in  ten  dayo. " 
May  25th — "You  will  have  check  promptly  by  the  1st." 

June  10th--"Acoount 3  are  alow  but  will  curely  settle  la 
firteoa  days. " 

ALL  PROUISES  UHFILLEB 
Don't  Promise  Any  More  But  Mail  Check  Today. 


HOLDING  UP  ORDERS  TO  FORCE  PAYMENT        151 

The  card  is  mailed  with  a  special  delivery  stamp  and  it 
makes  an  immediate  impression.  Ten  cards  were  recently 
sent  out  by  a  certain  firm  and  eight  brought  in  settlement 
within  five  days. 

SCHEME  6— THE  ELOQUENT  QUESTION  MARK 

Akin  to  this  letter  scheme  is  another  equally  as  unique 
that  has  aroused  many  lagging  debtors.  The  house  sends  a 
letter,  by  special  delivery,  formally  addressed  on  the  letterhead 
but  in  the  center  of  the  page  is  simply  a  large  interrogatioa 
point  printed  ia  red.      The  letter  is  signed  as  any  ordinary  letter. 

The  debtor  may  not  catch  the  point  instantly,  but  invariably 
he  will  rummage  in  his  mind  for  something  that  he  has  over- 
looked or  that  has  reference  to  the  house  sending  the  letter. 
In  the  majority  of  cases  he  will  hit  on  his  account  first. 

SCHEME  7— HOLDING  TIMELY  PURCHASES  PENDING  PAYMENT 

The  leverage  of  the  urgent  order  is  just  as  good  a  medium 
for  the  retail  credit  man  as  for  the  wholesaler.  It  is  especially 
effective  if  the  goods  ordered  are  intended  for  gifts,  as  is  often 
the  case  One  big  department  store  watches  such  purchases 
carefully.  For  example,  if  a  customer,  who  is  back  in  her  ac- 
count, orders  silverware  engraved,  the  credit  man  waits  until  the 
good3  are  ready  for  delivery  and  then  sends  a  polite  note: 


"The  engraving  department  advlsea  ^X9   that  the  set  of 
epoons  you  ordered  are  now  ready  and  we  had  intended  to  send 
them  out  to  you  this  afternoon.  We  have  Just  noticed,  however, 
that  your  last  month's  account  etill  remains  unpaid.  Won't  you 
send  ua  a  check  to  cover  this  at  once?  Then  we  can  have  the 
spoons  delivered  immediately.  We  feel  sure  you  would  hardly 
irant  this  account  to  become  any  larger  on  our  hooks. 

Two  or  three  days  before  Christmas,  or  a  wedding,  or  birth- 
day, this  scheme  is  bound  to  force  the  buyer  to  "pay-up." 

SCHEME  8— FORCING  COLLECTIONS  ON  C.  O.  D.  DELIVERIES 

Every  retail  credit  man  knows  tlie  value  of  any  scheme 
that  will  jolt  the  customer  into  a  recognition  of  the  condition 


152  HARNESSING  THE  C.  O.  D.  ORDER 

of  his  or  her  account.  One  l>Ig  store  docs  this  through  its 
C.  O.D.  service.  Suppose  a  lady  customer,  whose  credit  is  per- 
fectly good  but  who  becomes  negligent  at  times,  lets  her  account 
drag  thirty  days  behind  and  then,  without  heeding  the  store's 
letters,  comes  in  and  orders  more  goods.  When  the  pur- 
chase slip  comes  up  for  O.  K.  the  credit  man  notes  tlie  con- 
dition of  the  account  and  gives  orders  to  have  the  goods  sent 
out  C.  O.  D. 

Next  morning  the  driver  rings  the  customer's  doorbell  and 
asks,  say  $20,  for  the  package  he  brings  Instantly  the 
lady  becomes  indignant.  There  must  be  a  mistake,  she 
insists.  Her  purchases  are  always  charged.  The  driver, 
however,  has  no  alternative — he  must  take  back  the  money  or 
the  goods. 

He  suggests,  however, — it  is  not  the  first  time  he  has  played 
the  part — that  she  call  up  the  house  by  'phone  and  ask  the  credit 
man  for  an  explanation.  This  is  exactly  what  the  latter  has 
counted  on  and  in  answer  to  her  call  he  takes  a  hurried  look  at 
the  books  and  explains.  Her  account,  he  notes,  is  considerably 
overdue.  Probably  some  subordinate  in  the  department, 
unappreciative  of  tlie  e^:tent  of  her  patronage,  had  held  up  the 
charge  ticket.  Of  course  it  is  unfortunate;  tlie  store  apologizes; 
the  driver  is  called  to  the  'phone  and  told  to  leave  the  package. 

The  customer  receives  her  goods  in  triumph,  but  she  also 
receives  a  jolt  straight  from  the  credit  man  regarding  her 
delinquency  and  he  has  had  (^portunity  to  mention  if  per- 
sonally, a  thing  he  could  not  very  well  do  without  an  excuse. 
A  day  or  two  later  a  check  is  pretty  sure  to  find  its  way  to 
his  desk. 

SCHEME  9— COLLF.CTING  PAST  DUE  BILLS  ON  C.  0.  D.  ORDERS 

Another  store  uses  the  C.  O.  D.  purchase  as  a  collection  in  a 
somewhat  different  vvay.  A  customer,  whose  account  has  been 
long  neglected,  comes  in  and  orders  goods  sent  out  C.  O.  D. 
The  credit  man  leaps  at  the  opening.  A  bill  is  made  out  for 
the  purchase,  and   to  it  is  added  the  account  on  the  books. 

When  the  driver  delivers  the  goods,  he  has  with  them 
the  statement  in  full  and  he  has  but  one  alternative — to  take 
back  the  money  in  full  or  the  goods.  If  the  customer  wants 
the  articles  badly,  there  is  but  one  way  to  get  them — pay  the 


•ERRORS'  THAT  BRIXG  IN  DELINQUENTS         153 

entire  bill.      At  least  the  scheme  serves  to  rouse  her  to  the  delin- 
quency and  get  her  into  touch  with  the  credit  man. 

SCHEME  10— AN  INTENTiON/i,  ERROU  IK  THE  STATEiMENT 

A  Michigan  merchant  stumbled  onto  a  collection  scheme  by 
accident — and  then  used  it  systematically.  A  farmer  who  lived 
at  such  a  distance  that  a  personal  call  was  impractical,  owed 
$10  for  a  long  time.  He  was  one  of  those  men  who  are  counted 
as  "sure  pay  sometime"  but  who  are  never  hurried  up  by  a  little 
thing  hke  a  monthly  statement  or  the  ordinary  collection  letter. 

One  day  he  appeared  at  the  store,  highly  indignant. 

"Look  here,"  he  said,  "I  don't  owe  you  any  $20.  I  have 
just  received  this  statement  and   I  know  it  is  twice  too  much." 

One  glance  at  the  sLatement  showed  the  merchant  that  the 
bookkeeper  had  made  a  mistake  in  filling  in  the  amount  of  the 
bill.  It  took  but  a  few  minutes  to  show  the  farmer  the  books 
and  convince  him  that  it  was  an  error — and  then  the  merchant 
in  the  suavest  manner  possible  asked  him  when  he  could  pay 
the  actual  amount  of  the  account.  The  upshot  was  that  when 
the  farmer  left  the  store  he  carried  with  him  a  corrected  state- 
ment ornamented  ^ith  the  "Paid"  stamp. 

The  merchant  now  goes  through  his  books  every  month  and 
checks  ofT  the  accounts  that  are  to  be  billed  at  twice  the 
amount  of  the  actual  debt.  Invariably  the  padded  bill  brings 
the  man  in — sometimes  he  is  angry,  sometimes  only  protesting, 
but  it  always  gives  an  opportunity  for  a  personal  interviev/  and 
a  chance  to  talk  the  account  over  and  arrive  at  some  basis 
for  settlement. 

SCHEME  U— KOVEL  WAY  OF  WIELDING  "BIG  STICK" 

Carelessness  is  often  responsible  for  slow  payments.  It  is  the 
put-ofF  merchant  who  annoys  the  credit  man.  This  class  must 
therefore  be  handled  in  a  way  bordering  on  coercion.  He  must 
often  be  goaded  in  the  side.  One  concern  rouses  this  procrasti- 
nating merchant  by  having  the  advertising  man  write  a  short 
news  item  covering  a  h}'pothetical  law  suit  of  its  firm  against  a 
certain  debtor.  The  firm  is  given  an  execution  of  his  property, 
and  the  story  is  printed  as  a  news  item  in  ordinary  newspaper 
type,  with  a  heading  on  it  and  a  date  line.    This  is  torn  as  you 


154  LAST  RESORT  SCHEMES 

would  tear  a  clipping,  and  pasted  in  the  center  of  the  letter  to 
the  debtor.  Undernaath  the  clipping  is  written  on  the  type- 
writer: "  You  would  not  want  us  to  do  the  same  by  you,  would 
jou,  Mr. ?" 

SCHEME  12— THE  PERSONAL  CALL  OF  THE  COLLECTOR. 

Another  effective  scheme  of  the  retail  credit  man  is  to  play 
on  the  average  customer's  horror  of  a  personal  collector.  A 
Chicago  store  uses  this  in  a  unique  way.  When  the  account 
has  run  behind  and  the  routine  letters  have  failed  to  get  a 
response,  the  credit  man  calls  the  buyer  on  the  'phone. 

"I  just  called  you  up  to  tell  you,"  he  says,  "that  I  have  a 
memorandum  on  my  desk  to  have  one  of  our  men  call  and  see 
you  tomorrow.  I  find  that  your  check  has  not  come  in  as  yet, 
and  I  have  called  you  so  that  if  you  wish  you  can  wait  until 
tomorrow  and  hand  it  to  him  personally.  This  will  save  you 
the  bother  of  mailing  it." 

Of  course  the  purpose  of  the  telephone  conversation  is  to 
effect  just  the  opposite  result.  The  average  debtor  wants  to 
head  off  the  collector,  and,  in  many  cases,  this  'phone  message 
will  call  forth  an  urgent  request  not  to  have  the  collector  come 
around  as  the  check  will  be  mailed  that  m'ght. 

SCHEME  13— THE  "BAWLING  OUT"  METHOD  OF  COLLECTING 

Then,  occasionally,  every  retail  credit  man  finds  one  debtor 
on  his  books  on  whom  even  more  extreme  measures  must  be  used. 
Hope  of  retaining  the  customer's  patronage  is  abandoned.  The 
only  aim  is  to  get  the  money.  When  a  debtor  reaches  this  stage 
he  is  given  by  one  store  what  it  calls  the  "bawling  out"  process. 
A  real  estate  broker  was  indebted  to  a  number  of  stores.  The 
credit  man  for  the  largest  creditor  felt  that  this  man  could  pay 
his  bills  if  he  wanted  to  and  learned,  upon  investigation,  that  he 
was  actually  hoarding  considerable  cash  in  order  to  handle 
some  deab  which  he  very  much  desired  to  swing.  Nat- 
urally the  credit  man  deubted  the  propriety  of  the  customer's 
using  the  merchant's  money  to  run  his  business. 

The  collector  called  a  number  of  times  and  letters  were 
written,  but  all  to  no  effect.  Then  the  firm's  star  collector 
was  called  and  the  "bawling  out"  process  prescribed.    The 


"CERTiriCATE  OF  CREDIT"  APPEAL  155 

collector  decided  to  use  it  at  the  "psycholo^c^l  moment.  "  So 
each  day  he  waited  until  the  broker  was  in  conference  with  one 
of  his  clients;  then  he  would  open  the  office  door  and,  in  elevated 
tones,  ask  the  broker  when  he  expected  to  pay  that  bill  he  had 
been  promising  to  settle  for  three  months  past.  The  real 
.estate  man  stood  the  strain  for  a  week,  but  constant  fear  of  los- 
ing a  sale  by  the  untimely  entrance  of  this  collector  wore  him 
out,  and  at  the  seventh  call  he  paid  up. 

SCHEME  U— THE  WOMAN  COLLECTOR 


One  instalment  house  has  been  very  successful  in  its  bard 
local  collections  by  sending  a  lady  collector  to  call  on  its  men 
delinquents.  Few  things  are  more  embarrassing  to  a  man 
than  to  have  a  young  woman  approach  him  in  an  office  full  of 
his  associates,  lean  over  his  desk  and  in  a  stage  whisper  ask  him 
when  he  is  going  to  pay  the  $10.00  he  owes  her  firm.  In  nine 
cases  out  of  ten,  with  this  pressure  upon  him,  he  vnll  procure 
the  money  on  the  spot,  if  he  has  to  borrow  it 

SCHEME  15— THE  CEaTIFlCATE  OF  CREDIT 

Many  houses  have  brought  in  the  money  by  offering  a  senti- 
mental inducement  to  the  debtor.  An  instalment  firm  selhng 
by  mail  makes  clever  use  of  a  certificate  of  credit.  At  a  certain 
point  in  the  follow-up,  a  letter  is  sent  the  customer  enclosing  a 
sample  certificate  and  explaining  that  as  soon  as  the  account  is 
settled  in  full  a  properly  filled  in  and  authorized  certificate  of 
credit  will  be  presented  to  him.  This,  it  is  pointed  out,  wUl  be 
a  valuable  asset  to  him  in  dealing  with  other  concerns — in  fact 
in  every  transaction  where  his  credit  might  be  a  factor. 

The  certificate,  an  elaborately  lithographed  affair,  has  been 
found  remarkably  effective  when  used  on  country  and  small 
town  buyers.  In  their  desire  to  possess  a  properly  filled  in  cer- 
tificate, many  have  paid  their  instalments  before  they  fell  due. 

In  any  event,  these  schemes  are  more  or  less  emergency 
methods.  Except  in  the  last  case,  these  methods  are  em- 
ployed only  when  ordinary  methods  have  been  exhausted. 

The  clever  letter  is  always  the  most  diplomatic  collector. 
But  it  does  not  always  win.  When  it  faib,  the  scheme  comes 
into  its  own. 


Holding'  The  Trade  Of  The 
Poor  Credit  P^isk 

PART  XIV COLLECTING  MONEY  BY  MAIL  CHAPTER  69 

THE  POOR  CREDIT  mtmg  of  a  customer 
or  of  a  prospective  customer  is  ample  reason  for 
limiting  his  dealings  with  the  house.  But  to 
restrict  those  dealings  by  refusing  to  sell  goods  is 
not  only  cutting  crff  a  possible  source  of  present 
profit^  but  SHUTTING  OFF  the  probability  of  FXJRTHER 
DEAL^GS  in  that  direction.  Various  ingenious 
methods  by  which  the  experienced  credit  manager 
^^  turns  down^'  poorhj -rated  customers ,  and  at 
the  same  time  retains  all  or  part  of  their  trade  by 
assisting  them  to  handle  it  on  a  cash  basis  ^furnish 
some  of  the  most  profitable  lessons  in  the  study  of 
salesmanship  by  correspondence 

iOSSIBLY  Ibe  hardest  letter  to  write  in  the  whole 
field  of  business  correspondence  is  the  one  which  turns 
down  the  order  from  a  merchant  having  a  poor  rating 
at  the  same  time  getting  his  business  on  a  cash  basis.  And 
this  is  a  proposition  that  comes  up  almost  daily  to  the  credit 
men  in  large  wholesale  houses  and  in  manufacturing  establLsh- 
ments  selling  to  dealers. 

To  the  credit  man,  the  world  appears  to  be  full  of  storekeepers 
whose  imaginations  are  greater  than  their  capital — merchants 
who  dream  of  the  great  businesses  they  will  build  if  they  can 
only  get  credit.  It  is  only  one  out  of  a  hundred  v/ho  makes  a 
noticeable  success;  some  drift  along,  forever  haunted  by  sight- 
drafts  and  overdrafts,  and  the  others  sooner  or  later  fail,  and 

158 


PROFITABLE  TRADE  WITH  THE  SMALL  DEALER    157 

so  wholesale  houses    are  constantly  on  their  guard  against 
losses  from  this  class  of  customers. 

At  the  same  time,  these  hundred  merchants  represent  a 
Volume  of  business  that  the  wholesaler  cannot  altogether  ignore. 
TVhile  a' dealer's  credit  may  be  questionable  he  may  have  con- 
siderable trade  that  it  is  very  desirable  to  get  if  it  can  be  se- 
cured on  a  cash  basis  or  if  his  orders  can  be  held  down  to 
a  safe  margin, 

Human  nature  is  so  constituted  that  the  "httle  fellows" 
who  have  not  established  a  basis  for  credit  are  always  the  ones 
who  are  most  touchy  of  their  reputation,  and  so  great  diplom- 
acy is  required  in  handling  them  in  a  way  that  will  hold 
their  trade. 

There  are  some  firms  that  make  no  effort  to  secure  any  of 
this  business.  If  a  merchant's  rating  is  acceptable,  well  and 
good,  his  orders  will  be  filled,  but  if  there  is  any  doubt  as  to 
his  financial  standing  he  is  informed  in  no  uncertain  terms  that 
his  patronage  is  not  desired.  But  the  credit  man  who  is  looking 
after  the  larger  interest  of  his  house,  always  meets  the  vast 
army  of  "^ttle  fellows"  with  a  welcoming  hand  and  an  en- 
couraging smile. 

If  he  must  turn  one  down  he  does  it  so  diplomatically  that  the 
way  will  be  left  open  to  go  after  his  business  later  on  if  the  mer- 
chant becomes  thoroughly  established.  In  every  city  there  are 
prosperous  business  men  who  started  out  wiih  small  capital 
and  were  considered  poor  credit  risks  at  one  time.  And  so  the 
credit  man  must  look  upon  every  customer  as  a  possible 
Marshall  Field. 

The  large-calibre  credit  man  realizes,  moreover,  that  he  is 
a  salesman  as  well  as  a  collector  and  must  coddle  along  the  small 
dealers,  even  at  the  expense  of  an  occasional  lost  account. 
This  is  the  price  the  house  is  willing  to  pay  for  the  additional 
business  that  could  never  be  secured  by  limiting  the  credits 
too  strictly. 

No  definite  rules  can  be  laid  down  for  handling  this  class  of 
business.  The  form  letter  is  usually  impractical,  for  each  case 
must  be  diplomatically  handled  with  a  full  knowledge  of  the 
standing,  reputation  and  record  of  the  customer.  The  letters  given 
in  this  chapter  are  not  intended  as  models  to  be  generally  fol- 
lowed, but  they  may  point  out  certain  attitudes  that  should  be 
guarded   against  and  they  may  oiler  some  suggestions  as  to 


158 AN  UNDIPLOIMATIC  DUN         

diplomatic  methods  that  have  proved  successful  in  holding  the 
business  of  this  class  of  customers. 

Here  is  a  letter  from  a  type  foundry  to  one  of  its  delinquent 
customers: 


£>oar  Sir: 

We  are  la  receipt  of  your  faror  of  the  7th,   encloeinc 
an  order  for  

On  referring  to  our  ledger  we  find  that  you  have  a  Icnj 
overdue  account  on  our  ledger  amounting  to  $54. 7G  and  we  are 
surpria^d  that  you  ehould  send  us  another  order  without  enclos- 
ing a  draft  to  take  care  of  this  old  deht. 

Of  course,  we  appreciate  your  business  ana  aim  ta 'he 
eery  ilheral  in  our  torma.     You  must  admit  that  we  have,  been  ez» 
ceedingly  lenient  in  your  case.     But  it   la  not  'business-like  to 
ist  these  old  accounts  accumulate  and  it  looks  to  us  as  if  it 
^ould  be  to  your  interest  Just  the  sane  aa  it  is  to  ours  for  you 
to  tako  care  of  this  obligation  at  once. 

You  must  understand  that  wa  have  to  call  et  halt  soma* 
time  and  so  we  do  not  feel  warranted  in  filling  this  last  order 
tintil  you  send  ua  a  remittance  covering  the  old  account.     We 
hope  to  receive  a  check  toy  return  mail  andi  we  will  then  fill 
your  order  of  the  9th 

With  toest  wishes  we  are. 

Very  sincerely  yours. 


This  letter  was  evidently  written  while  the  credit  man  was 
"hot  under  the  collar,"  but  it  is  not  unlike  hundreds  that  pass 
through  the  mails  every  day — letters  that  are  sadly  out  of  tune, 
letters  that  are  discordant  in  arguments  and  in  language.  If 
the  printer  had  some  important  job  requiring  material  that 
could  be  secured  only  from  this  particular  tj'pe  foundry,  he 
would  probably  hustle  around  and  scrape  up  the  money  to  set- 
tle the  old  account.  But  it  is  equally  probable  that  no  more 
orders  would  be  sent  to  a  house  that  handled  his  account  in 
this  manner. 

Even  though  he  may  have  been  negligent  about  his  bills,  the 
house  could  ill-afford  to  collect  the  account  at  the  expense 
of  his  good  will. 


A  LETTER  THAT  DOES  NOT  OFFEND  159 

A  new  credit  man  coming  to  this  foundry  had  a  broader 
grasp  of  the  functions  of  his  department,  and  in  handling  a 
similar  situation,  wrote: 


Sear  Slr: 

Your  letter  of  'tE«  9th  aceompaDylng  your  order  for  ___ 
lias  Just  teen   received.  We  thank  you  for  favoring  us  with  thla 
>)U8lnes8. 

Do  you  realize  that  your  previous  acdount  for  #34.76  Is 
now  overdue  nearly  three  months?  It  may  have  heen  overlooked, 
although  your  attention  has  heea  called  to  It  seveial  times. 

We  are  at  all  times  willing  to  grant  our  printer 
friendo  reasonahle  aocommodations,  but- w^en  «e  allow  them  to  keep 
addir.3  new  accounts  without  offering  a  aat.cl'ement  of  their  old 
ohligations  we  feel  we  are  doing  both  ourselves  and  the 
customers  an  Injustloe. 

Please  understand  that  ite  appreciate  your  business  very 
fflucli  and  we  try  to  merit  it  hy  tho  quality  of  goods  wa  sell  and 
the  treatment  accorded  our  customers. 

We  hope,  therefore,  that  you  will  send  us  your  cheok  for 
this  old  account  hy  return  mail,  and  Immediately  upon  its  receipt 
we  will  be  very  glad  to  give  rc'ir  order  our  very  beat  attention 
and  ship  it  to  you  promptly. 

We  trust  you  will  look  at  this  matter  in  the  same'llght 
fig  we  do  and  that  you  will  give  thla  past  due  account  your  im- 
mediate attention. 

Vei'y  truly  yours 


This  letter  is  diplomatic;  there  are  no  harsh  words,  no 
Abuse.  And  yet  the  point  is  made  perfectly  clear  that  further 
credit  cannot  be  secured  imtil  the  old  obligation  has  been  wiped 
off  the  books. 

Throughout  the  letter  there  is  evidence  of  a  spirit  of 
fairness  that  will  reach  most  men  when  bluster  and  bullying 
would  have  no  effect.  The  delinquent  is  made  to  feel,  no  mat- 
ter what  happens,  that  he  has  been  treated  courteously  and 
fairly,  and  the  hotlse  retains  his  good  will. 

The  best  credit  man  is  not  the  one  who  has  the  smallest 
percentage  of  bad  accounts.  Every  hou^e  establishes  the  per 
cont  o^  loss  from  bad  debts  which  the  business  will  stand  and 


160       A  LETTER  TO  A  POORLY-RATED  PROSPECT 

below  which  it  does  not  want  to  go.  So  the  good  credit  man 
puts  salesmanship  into  his  letters  and  thinks  not  only  of 
keeping  the  loss  from  bad  accounts  from  rising  above  the  estab- 
lished allowance,  but  also  of  increasing  the  volume  of  business 
that  his  house  is  doing.  He  looks  to  the  future  as  well  as  to 
the  past. 

Here  is  the  letter  sent  out  by  a  Chicago  wholesaler  to  a 
customer  on  whom  reports  had  not  been  satisfactory.  It  does 
not  tell  the  customer  bluntly  that  his  standing  is  not  satis- 
factory. A  sugar  coating  is  given  to  a  bitter  pill  by  assuring 
him  that  the  reports  "do  not  give  the  required  information," 
and  as  an  inducement  to  secure  his  order  on  a  cash  basis,  a 
special  discount  is  offered: 


Dear  Sir: 

In  seeking  Information  from  the  usual  outside  channels, 
for  tasing  credit  for  you,  we  find  our  reports  have  not  been 
eufficient  in  detail  to  permit  us  to  arrange  this  matter  on  an 
etiuitatle  basis.  These  reports  all  speak  very  highly  of  you  in 
a  personal  way,  hut  do  not  give  us  the  required  information  in 
the  way  of  assets  as  compared  with  liabilities  to  enable  us  to 
arrive  at  such  a  credit  basis  as  ws  feel  you  unijuestionably  are 
entitled  to. 

We  assume  you  want  our  eoods  for  your  early  fall  trade. 
It  is  Imperative,  therefore,  that  we  ship  immediately.  We  sug- 
gest that  on  this  order  you  arrange  to  favor  us  with  draft,  in 
consideration  of  which  we  will  be  pleased  to  alloTr  you  a  special 
discount  of  Z%.  ■   Bear  In  mind  that  we  suggest  these  terms  only 
on  this  first  order,  as  we  feel  confident  we  can  easily  arrange 
a  credit  basis  for  all  future  shipments  we  are  positive  you  will 
need  in  our  line. 

We  sincerely  trust  you  will  take  no  personal  exception 
to  our  above  suggestion,  which  we  have  made  in  your  interest 
Bolely. 

Thanking  you  for  the  kindness  of  an  immediate  and,  we 
trust,  favorable  reply,  we  are,' 


Yours  very  truly'. 


While  the  merchant  who  received  the  letter  was  probably 
disappointed,  there  was  nothing  about  it  to  offend  him  and  he 


FORCING  A  PART  PAYMENT  161 

could  have  nothing  but  respect  for  the  house  that  conducted 
its  affairs  on  such  a  courteous,  yet  business-hke  basis.  Asking 
a  delinquent  for  money  can  be  just  as  dignified  and  courteous 
as  trying  to  sell  him  goods — and  it  keeps  the  customer  ia  a 
friendly  attitude.  A  'grouchy"  credit  man  may,  in  one  letter, 
lose  to  a  house  a  business  it  had  been  years  in  developing. 

Here  is  the  letter  from  another  wholesale  house  to  a  customer 
who  had  been  allowed  a  small  line  of  credit  but  who  had  fallen 
behind  in  his  payments: 


l)ear  Sir: 

After  careful  consideration  of  your  recent  letter  wo 
are  sorry  to  inform  you  that  we  have  decided  to  hold  back  the 
order.  We  regret  this,  I  assure  you,  quite  as  much  as  you  do, 
tut  our  unalterable  rule  of  business  in  this  regard  leaves  U8 
no  alternative, 

We  do  not  in  the  least  like  to  lose  your  account,  and 
we  sincerely  trust  we  may,  in  the  near  future,  come  to  8om» 
agreeable  understanding. 

It  is  to  be  hoped  that^^you  will  soon  dispose  of  the 
property  you  mentioned  in  your  last  letter,  and  that  its  sale 
will  enable  you  to  clear  up  the  outstanding  balances  against  you. 

Our  action  with  regard  to  your  case  is  to  be  especially 
regretted,  owing  to  the  lateness  of  tie  year;  we  atill  feel  you 
would  be  best  served  if  you  sent  ue  your  remittance  of  $200.00, 
and  let  the  shipment  go  forward.   We  say  this  in  all  earnestness, 
as  we  know  what  it  means  to  go  into  the  open  market  at  this  tlmo 
to  buy  Christmas  goods. 

Should  we  not  hear  from  you  by  next  Thursday  by  wlro  or 
mall  we  will  have  to  unpack  your  shipment  and  place  back  in 
etock,  as  It  is  taking  up  valuable  space. 

Very  truly  yours. 


This  is  in  reality  a  collection  letter  aimed  primarily  "to  get 
the  money"  by  deftly  suggesting  to  the  merchant  how  hard  it 
would  be  for  him  to  go  into  the  open  market  to  buy  Christmas 
goods,  and  the  fact  is  driven  home  that  he  cannot  hope  to  have 
his  order  filled  without  a  substantial  payment  on  account  for 
he  is  assured  that  the  shipment  will  be  unpacked  unless  he  w 


162        SALESRIANSHIP  IN  A  COLLECTION  LETTER 

heard  from  by  a  specified  time.  This  letter  is  a  shrewd  blend- 
ing of  coflecting  and  selling,  and  while  it  may  hurt,  it  gives  the 
necessary  prod  to  an  easy-going  merchanl.that  he  cannot  expect 
continued  credit  unless  he  looks  more  diligently  to  the  payment 
of  his  bills 

A  wholesale  house  was  unable  to  secure  the  required  in- 
formation regarding  a  new  merchant  and  wrote  him: 


Dear  Sir: 

Concernlne  your  valued  order,  we  find  It  best  to  write 
you  directly  relative  to  it  in  order  that  we  may  arrange  the  nat 
ter  of  credit  terms  to  your  test  adyantage. 

ffe  have  experienced  a  little  trouble  in  securins  def- 
inite Information  for  basing  oredit.  But  after  all,  this  is  a 
matter  which  concerns  us  alone  and  we  would  much  rather  secura 
the  necessary  information  direct  from  you  than  from  outside 
sources.'  Our  experience  in  the  past  has  been  that  when  we 
have  gathered  information  through  outside  channels,  very  fre- 
Quently  it  does  a  merchant  a  serious  injustice  and  it  is  there 
fore  always  our  preference  to  go  direct  for  the  facts  we  need; 
as  we  are  doing  frankly  in  this  case. 

We  enclose  a  statement  and  will  appreciate  it  very 
such  if  you  will  fill  this  out  so  we  can  determine  upon  a 
credit  basis  from  the  facts  you  submit.   It  is  understood,  of 
course,  that  this  statement  is  to  be  held  strictly  confidential 
and  used  only  by  ourselves. 

The  particular  clese  of  goods  which  your  order  calla 
for  has  proved  one  of  the  most  popular  lined  that  we  are  showing 
this  fall.  You  will  find  an  immediate  demand  for  it  and  one  that 
Bill  prove  very  profitable  for  you. 

We  will  appreciate  an  early  reply,  with  statement  prop- 
erly filled  out  in  detail,  and  immediately  on  receipt  the  order 
will  have  our  preferred  attention.  We  trust  to  be  able  to  make 
Shipment  at  once. 

Awaiting  your  reply,  for  which  we  thank  you,  we  are. 


Very  truly  yours, 


This  is  a  diplomatic  letter,  for  it  cleverly  suggests  to  the 
merchant  that  the  house  is  doing  him  a  favor  in  sending  directly 
to  hirn  for  information,  thus  avoiding  the  injustice  that  might 


A  FORCEFUL  REQUEST  FOR  CASH  IN  ADVANCE    1G3 

follow  from  incomplete  outside  information.  And  then  the 
fourth  paragraph  brings  in  the  selling  talk  intended  to 
stimulate  the  desire  of  the  merchant  to  have  his  order  filled 
promptly. 

A  large  grocery  house,  on  receiving  an  unsatisfactory  re- 
port from  the  mercantile  agencies,  wrote  this  letter  to  a 
would-be  customer: 


Daer  Sir: 

We  Tiava  studied  the  data  regarding  your  f Inanel&l  con- 
dition and  unless  there  la  eomo  mistake  In  the  Information  fur- 
niehed  us  It  would  appear  that  your  capital  is  not  large  enough 
to  Justify  ua  in  letting  your  order  go  forward  on  our  regular 
terms 

Your  reputation  Is  well  vouched  for  and  on  the  score  of 
your  good  Intentione  we  are  quite  satisfied,   but   it   is    positive- 
ly necessary  in  such  Instances  that  your  assets  be  such  as    voulA 
aosuro  us  that  you  could  taie  care  of  maturing  accounts;    It   is 
not  so  much  a  Question  of  whether  a  dealer  will  pay  a  bill  aa 
-vhether  he  can  pay  it. 

It  is  not  at  all  Improbable  that  the  data  wo  hafo  is  In- 
correct and  therefore  we   enclose  a  blanjc    form  which  wa  will  aslE 
you  to  fill  in  and  mall  us  together  with  the  names  of  a  few 
houses  you  have  had  dealings  with. 

If  agreeable  to  you,   please  deduct  Z%  cash  discount   aa4 
include  remittance  with  your  reply,   and  further  delay  on  your 
order  will  be  unnecessary-- the  shipment  will  then  go  forward  at 
once. 

Very  truly  yours. 


Such  a  letter  is  severe  but  m  some  cases  necessary,  espe- 
cially with  weU-meaning  but  inexperienced  men  who  are  enter- 
ing the  mercantile  field  with  a  limited  capital  and  everything 
about  the  business  to  learn.  The  third  paragraph  affords  a 
little  balm  for  the  sting,  by  the  suggestion  that  the  information 
secured  may  be  incorrect. 

Some  firms  depend  upon  the  "hard-up"  argument  for  mak- 
ing collections  ^nd  it  is  frequently  the  refuge  behind  which  a 
credit  man  tries  to  hide  his  real  motive  for  denying  credit — a 


164      A  COMMON  FORM  OF  COLLECTION  LETTER 

false  position   that  deceives  no  one.     Here  is  an' example  of 
such  a  letter:. 


Dear  Sir: 

Since  your  vlait  at  our  office  a  few  weeks  ago,  we  havo 
ceen  pleased  to  receive  an  order  from  you  amounting  to  $475.00, 
We  want  to  assure  you  of  our  appreciation. 

You  are  undoubtedly  wise  in  putting  in  a  good  subatan- 
tial  list  of  dry  eooda  for  the  fall  and  winter  trade,  and  we 
trust'  that  you  will  dispose  of  it  quite  readily. 

We  are  anxious  to  chip  you  thiq  order  as  soon  as  possi- 
ble, but  as  we  have  several  very  larsa  debts  to  meet  in  the  near 
future  T?e  are  desirous  of  doing  business  on  a  cash  basis,  hence 
we  would  feci  especially  gratified  if  you  would  do  your  beat  to 
favor  U3  with  your  check  for  the  order,  leas  2%   discount. 

We  are  asking  this  favor  of  all  our  customers  and  we 
trust  that  you  will  not  feel  that  we  are  making  aa  exception  in 
your  case.   Rest  assured  that  cuch  is  not  the  case.   It  is  our 
financial  need  that  makes  it  urgent  that  we  pureue  this  policy 
for  some  time  to  come. 

Trusting  you  will  strive  to  comply  with  our  susseation* 
ve  beg  to  remain. 


While  it  may  have  been  true  that  the  company  had  large 
debts  to  meet  and  really  needed  the  cash,  yet  the  letter  was  sent 
out  by  one  of  the  oldest  and  largest  dry  goods  houses  in  the 
country  and  it  is  doubtful  if  its  statements  were  believed 
The  assurance  that  this  same  request  was  being  made  to  all 
its  old  customers  is  equally  preposterous,  and  the  merchant 
who  received  such  a  letter  could  not  help  feeling  that  the 
house  was  not  treating  him  honestly.  Even  an  inexperienced 
dealer  is  not  so  easily  fooled;  a  frank,  business-hke  statement 
that  his  credit  is  not  acceptable  will  always  prove  a  surer 
method  of  bringing  forth  a  check  and  it  always  commands  the 
respect  of  the  customer. 

Much  more  effective  is  the  letter  that  tries  to  get  the  cash 
with  the  order  by  pointing  cut  to  the  customer  why  it  is  to  his 
advantage  to  buy  on  the  cash  basis.     One  credit  man  cleverly 


ADVANTAGES  OF  A  "CASH  \VITH  ORDER"  SALE    165 

points  out  how  the  tliree  per  cent  discount  for  cash  is  just  the 
same  as  making  an  additional  three  per  cent  profit  on  hlg 
goods  and  receiving  this  profit  in  cash  before  one  of  the  crticles 
is  sold. 

Another  firm  has  an  array  of  figures  to  show  how  seldom 
merchants  fail  who  buy  for  cash  and  keep  up  their  own  col- 
lections. 


"It  ia  not  that  we  hesitate  aCout  extending  credit  but 
we  always  take  occasion  to  adrlse  dealftfa  to  stick  to  the  cash 
policy  as  much  as  possible. " 


This  sentence  rings  true  in  the  credit  letter  because  the  firm 
goes  on  to  give  specific  reasons  why  such  a  policy  is  to  the  mer- 
chant's advantage.  The  firm  does  not  shake  confidence  in  its 
own  management  by  the  cry  of  needing  money.  The  letter  is 
dignified  and  business-like.  It  carries  conviction  because  the 
reasons  are  logical  and  "good  business." 

And  then  there  are  credit  men  who  talk  to  young  business 
men  in  a  heart-to-heart  maimer,  telling  them  that  they  are 
willing  to  extend  the  credit  but  it  has  been  their  experience 
that  it  is  advisable  for  merchants  to  go  slov/  until  they  get  estab- 
lished and  to  order  in  small  quantities  until  they  are  thoroughly 
familiar  with  the  needs  of  the  field. 

A  firm  in  Chicago  manufacturing  physicians'  and  hospital 
supplies  writes  in  a  similar  way  to  young  doctors  who  have 
sent  in  their  first  order: 


Dear  Sir: 

It  ia  a  pleasure  to  Inform  you  that  the  replies  re- 
ceived from  the  persons  whom  you  gave  us  as  references  as  to 
your  personal  standing  and  integrity  aro  very  satisfactory  and 
we  have  accepted  your  order  on  the  terms  outlined  in  our  previous 
correspondence. 

We  notice,  however,  in  looking  over  your  list,  a  number 
of  articles  for  which  we  believe  you  will  have  no  inmoliato  need 
--la  fact,  some  of  the  Instruments  aro  used  only  for  special  op- 
erations and  are  likely  to  remain  la  your  case  for  many  months 
before  you  will  have  use  for  them. 


166  ONE  WAY  OF  REDUCING  CREDIT  RISKS 


A8  our  experience  of  over  30  years  in  equipping  pnysi^ 
clana  has  taught  us  that  the  flnp.noial  returns  of  a  young 
physician  starting  out  in  practice  are  not  always  as  rapid  ap  he 
may  anticipate  we  would  aueeest  the  emission  of  the  instruinenta 
we  have  enumerated  helow.   If  occasion  should  arise  for  inunedi- 
ate  need  of  any  of  these  instrxiaents  they  can  bo  supplied  i)7 
telegraph  order  within  a  few  hours. 

By  reducing  the  amount  of  the  order  you  will  also  re- 
duce the  amount  of  the  payments,  enabling  you  to  put  aside  a  sur- 
plus which  may  be  of  considerable  advantage  in  case  of  emergency. 

We  trust  that  our  suggestion  will  bo  taken  In  good  part, 
and  In  the  interval,  awaiting  your  instructions,  we  will  have 
your  order  made  ready  for  shipment  so  that  there  may  be  no  un- 
becesaary  delay. 

Vory  truly  yours. 


^jCijLX^id*.^ . 


No  one  could  take  offense  at  this  attitude — that  is,  no  one 
whose  business  is  worth  goicg  after — and  there  is  something 
about  the  letter  that  shows  a  genuine  interest  on  the  part  of  the 
firm.  The  doctor  really  feeb  that  the  house  is  giving  him 
good  advice,  is  looking  to  his  interests  as  well  as  to  its  own 
and  so  the  order  is  cut  down  and  it  is  done  in  such  a  way  that 
it  increases  the  good  wiD  of  the  customer. 

One  of  the  every-day  experiences  of  the  credit  man  is 
to  pass  on  orders  from  customers  who  are  inclined  to  stretch 
their  credit  accommodations.  The  trick  is  to  induce  the  cus- 
tomer to  reduce  the  size  of  his  order  without  offending  him. 

Here  is  the  way  a  wholesale  grocery  house  bluntly  handles 
this  class  of  business: 


"ffe  are  not  satisfied  with  the  replies  regardlaff  your 
standing.  The  total  amount  of  your  order  would  not  warrant  ua 
In  running  any  risk.   If  you  are  disposed  to  pay  us  on  aocount, 
half  the  invoice,  $48.30,  and  promise  to  remit  the  balance  In  thtt 
usual  thirty  days,  we  will  send  on  the  goods  as  quickly  &s 
possible. " 


Here  is  the  diplomatic  way  in  which  a  rival  concern  per- 
suades the  customer  to  reduce  his  order; 


CUTTING  DOWN  THE  ORDER IC7 

Dear  Sir: 

Tour  order  for  goods  received.  We  are  quite  pleased  to 
hear  from  your  part  of  the  country,  and  wo  trust  that  businesa 
Is  on  the  upward  trend'in  Streator 

Your  intention  to  put  in  a  etoclc  of  flour  for  winter 
trade  Is   good  policy,  but  the  brand  you  order  ia  uot  one  that  we 
feel  will  be  an  Al  seller  in  Streator.   It  la.  Of  courae,  possible 
that  you  may  be  able  to  dispose  of  the  entire  order  within  a  few 
inontha,  but  our  past  experience  teaches  us  that  it  ia  always 
teat  for  a  dealer  to  go  slow  on  a  new  brand  of  flour. 

Instead  of  sending  you  a  $300.00  order,  we  feel  that  it 
will  be  to  your  advantage  to  try  $100.00  worth  of  the  flour 
firet,  and  see  how  it  sella.  After  that  you  will  be  in  a  posi- 
tion to  know  positively  whether  thia  brand  will  be  an  aaset  or  a 
dead  burden  on  your  hands   We  never  like  to  send  any  dealer  a 
till  of  goode  that  we  think  will  not  come  up  to  his  expectations 
as  a  seller. 

Now.  up  in  the  country  districts  of  North  Dakota  this 
hrand  of  flour  which  you  desire  is  a  big  eeller.  A  large 
demand  has  been  created  for  it  up  there,  but  in  your  section 
thia  demand  we  feel  has  not  been  fully  developed.  Hence  our 
%dvice  to  you. 

Very  truly  yours. 

Country  Credit  Departii-nl 


After  reading  this  letter  the  merchant  feels  like  thanking 
the  wholesale  house  for  giving  him  such  good  advice  and  look- 
ing after  his  interests  by  cautioning  him  not  to  tie  up  his  capital 
in  an  unsalable  hne. 

A  credit  man  who  tried,  not  very  successfully,  to  combine 
a  collection  and  selling  letter,  wrote  to  a  comparatively  new 
customer: 


"He   are  in  receipt  of  your  valued  order  given  our  rep- 
resentative, Mr.  Hammond,  and  we  wish  to  thank  you.   Our  busi* 
ness  relations  durinj  our  acquaintance  have  been  very  pleasant 
and  we  trust  have  been  profitable  to  both  buyer  and  seller.   We 
note  that  the  remittance  for  your  last  purchase--$288. 89--i3  10 
ilays  past  due--a  condition  for  which  we  are  at  a  losa  to  account 
--Bsrhapa  an  oversight  on  your  part. 


168  THE  TRUE  VERSUS  THE  FALSE  NOTE 

"Before  shipping  this  large  order — $978.30--«e  would 
take  oecafrlon  to  euggeat  that  you  oblige  uo  by  reducing  the 
order  to  half  the  amount,  owing  to  the  fact  that  we  have  had 
a  very  heavy  demand  on  the  ll"ne  of  goods  you  call  for,  and  we 
fear  that  we  will  run  short  before  we  can  replenish  our  stoclc. 
■We  ho.ve  aelced  others  to  aot  on  thle  suggestion  which  is  simply 
a,   course  followed  by  every  live  and  prosperous  business  house.' 


The  letter  does  not  ring  true;  it  has  a  hollow  sound  that 
does  not  fool  the  buyer.  The  reference  to  the  past-due  account 
and  the  request  to  reduce  the  order  by  half  are  so  closely 
connected  that  the  thought  in  the  credit  man's  mind  is  apparent 
and  the  reader  does  not  believe  that  the  old  customers  have 
been  asked  to  reduce  their  orders  on  the  same  line  of  goods. 

But  here  is  a  credit  man  facing  an  identical  situation  who 
succeeded  in  having  the  order  reduced.  There  is  no  suggestion 
that  the  house  is  not  doing  exactly  as  it  says. 


Sear  Sir: 

We  thank  you  for  your  order  for  eeml-porcelain  ware, 
Sfflountlng  to  $500.  This  line  has  proven  so  exceptionally  popu- 
lar this  season  that  it  has  been  practically  impossible  for  us 
to  fill  the  demand  In  our  usual  prompt  way. 

It  will  be  appreciated.  Mr.  Roe.  as  a  special  favor  on 
your  part  If  you  will  permit  us  to  reduce  this  order  to  $200  for 
Immediate  shipment.  We  are  asking  this  favor  from  other  cus- 
tomers in  order  that  we  may  let  all  share  in  the  popular  demand 
for  this  very  excellent  lino. 

We  will  hold  the  balance  of  your  order  on  epeclal  file 
and  would  be  pleased  to  receive  your  order  for  more  of  the  line 
at  any  later  date  that  you  may  be  In  need  of  It.   Let  us  assure 
you  that  we  will  appreciate  very  sincerely  your  accommodating  us 
In  this  matter  and  regret  that  the  demand  for  the  line  necessi- 
tates our  asking  the  favor  of  you. 

Awaiting  your  very  prompt  reply  and  assuring  you  that 
on  receipt  of  It  the,  ordenwlll  go  forward  immediately,  wa 
are. 

Very  truly  yours. 


(^^^f^.^T<Sl^^ 


THE  REAL  FUNCTIONS  OF  THE  CREDIT  MAN      169 

An  exceedingly  diplomatic  turn-down  is  used  by  a  New  York 
house  to  u  would-be  credit  customer: 


Dear  Sir: 

Some  tine  ago  the  management  enforced  upon  our  sales 
department  a  rule  that  all  orders  should  be  accompanied  by  cash.* 
unless  the  account  had  been  previously  passed  upon  by  our  credit 
department- 


This  opening  is  more  than  a  clever  turn-down;  it  is  a  skillful 
«alcs  argument  as  well.  It  takes  off  the  personal  affront  of  the 
refusal,  and  indulges  in  a  little  confidence  with  the  customer 
that  has  the  human  ring.  Any  small  confidence  of  this  kind  is 
always  a  good  thing. 

From  these  letters  it  is  very  evident  that  no  hard  and  fast 
rules  can  be  laid  down  for  the  guidance  of  credit  men  but  some 
practical  suggestions  may  be  found,  showing  what  to  avoid  and 
how  these  embarrassing  situations  may  best  be  met. 

If  it  were  the  function  of  the  credit  man  to  keep  up  collec- 
tions and  hold  his  bad  accounts  down  to  the  minimum,  his 
task  would  be  easy.  It  would  be  very  simple  to  refuse  sales 
to  everyone  except  the  merchants  who  are  known  to  be  "good 
pay."  But  the  house  wants  to  increase  its  business  and  too 
strict  a  policy  on  the  part  of  the  credit  man  invariably  means  a 
loss  of  customers.  So  every  house  fixes  the  per  cent  the  business 
will  stand  for  bad  accounts  and  the  best  credit  man  is  he 
who  keeps  close  to  this  line.  By  falling  below  the  fixed  per  cent 
the  management  would  complain  to  him  that  he  is  too  strict, 
driving  business  away,  and  this  is  just  as  bad  as  it  is  to  let  down 
the  bars  and  let  in  too  many  bad  accounts. 

So  the  problem  of  the  credit  man  is  to  deal  diplomatically 
with  the  questionable  customers;  get  their  business  on  a  cash 
basis  if  possible;  but  if  he  cannot,  point  out  to  them  how  it  is 
to  their  advantage  to  reduce  their  orders  to  a  level  consistent 
with  the  demands  of  their  trade — orders  that  the  house  will  be 
glad  to  fill.  He  must  have  an  eye  to  salesmanship  and  to  col- 
lections and  write  letters  that  will  secure  the  maximum  of  busi- 
ness at  the  minimum  loss; he  must  be  first  and  always,  a  diplomat 


Making  CAPITAL  Out  Of 

Complaints 

PART  XV      HANDLING  THE  LONG-DiSTANCE  CUSTOMER     CHAPTER  6l 

WHEN  A  BUSINESS  is  at  its  height,  there  is 
nothing  that  perplexes  the  head  more  than  an  in- 
creasing number  of  complaints.  These  mistakes 
are  almost  inevitable  in  a  grooving  organization; 
the  problem  is  to  handle  them  in  such  a  way  that 
they  will  not  impair  the  firm's  prestige — rather y 
to  Turn  Them  into  a  Constructive  Force.  This 
chapter  shows  how  complaints  have  been  turned  to 
orders  and  gives  letters  that  have  sounded  har- 
mony and  pulled  business  on  top  of  hard -to - 
handle  complaints — letters  that  have  resulted  in 
increased  loyalty  and  tightened  the  hold  of  a  firm 
on  its  distant  customers 


WESTERN  mail-order  house  recently  established  a  new 
promotion  department,  the  purpose  of  which  was  to  re- 
vive the  business  of  former  customers.  An  examination 
of  the  files  showed  large  numbers  of  names  which  had  not  been 
checked  with  order  notations  for  two  or  three  years — over  a 
hundred  thousand  altogether.  An  estimate  of  the  cost  of  the 
literature  mailed  to  these  addresses,  without  apparent  returns 
showed  an  enormous  waste  of  ammunition.  Added  to  the 
actual  expense  of  mailings,  was  the  still  greater  item  of  the  loss 
of  trade. 

The  manager  determined  to  discover,  if  possmJe,  the  reason 
for  the  severed  relations  and  a  letter  was  sent  out,  frankly 
asking  why  the  former  customer  had  stopped  buying.  The 
letter  is  printed  in  full  on  page  1G4  of  Volume  II, 

170 


ADJUSTMENTS  THAT  MADE  SALES 171 

The  letter  was  first  sent  to  a  try-out  list  of  1,500  names  and 
the  response  was  immediate — sixty-seven  per  cent;  229  letters 
contained  complaints  and  forty-six  were  entitled  to  cash  adjust- 
ments which  cost  $271.00.  But  orders  amounting  to  $5,100 
came  in  as  a  direct  result  of  these  letters.  The  cost  of  the 
mailing  and  the  adjustments,  $483.00,  was  oflfset  by  new  busi- 
ness amounting  to  more  than  $5,000  and,  in  addition,  the  house 
regained  the  good  will  of  several  thousand  old  customers,  and 
made  certain  at  least  a  share  of  their  future  business. 

One  adjustment,  for  instance,  amounting  to  $2.21  demanded 
by  a  woman  in  Nebraska  brought  a  $70.00  order  by  return 
mail;  a  Louisiana  customer  claimed  that  he  had  been  swindled 
on  a  $16.00  purchase.  The  money  was  refunded  and  lead 
to  orders  from  the  complainant  and  from  several  of  his  friends 
— the  amount  was  well  up  in  the  tliree  figures.  Every  settlement 
brought  in  later  orders  and  also  made  a  warm  friend  and 
several  thousand  "boosters"  performed  an  advertising  service 
that  could  not  be  measured  in  money  terms. 

These  instances  show  what  the  "letter-adjuster"  of  complaints 
can  accomplish,  when  applied  in  the  right  way.  The  proper 
handling  of  a  complaint  turns  it  into  an  advertLseraent.  In  the 
hands  of  a  diplomatic  correspondent  it  becomes  a  basis  upon 
which  to  build  business.  It  not  only  offers  the  house  an  oppor- 
tunity to  get  in  closer  touch  with  the  customer,  and  show  a 
genuine  interest  in  him,  but  it  brings  to  light  weaknesses  which 
should  be  remedied  for  the  sake  of  future  business. 

No  matter  whether  a  customer's  grievance  is  real  or  imagi- 
nary the  house  cannot  afford  to  neglect  him  or  ignore  his  cora- 
plainL  His  future  trade  and  the  influence  he  may  have  on  other 
customers  or  prospects  call  for  a  prompt  and  satisfactory 
settlement  of  the  trouble.  The  successful  mail-order  houses  are 
all  agreed  on  this  one  point:  adjust  a  complaint  at  once,  even 
though  it  may  be  unreasonable,  and  try  to  capitalize  that  com- 
plaint so  it  will  pay  dividends  in  future  orders. 

By  tactfully  wording  the  adjustment  letter  to  give  an  impres- 
sion of  fairness  and  good  intentions,  an  appeal  is  made  to  one 
side  of  the  customer  that  can  be  reached  in  no  other  way.  Fair- 
ness inspires  fairness  in  return  and  the  customer  is  quick  to 
respond  to  the  interest  manifested  by  the  house. 

The  complaint  may  be  settled  so  liberally  that  the  customer 
feels  under  obligations  to  reciprocate.    Human  iiaturc  is  such 


172  FAIRNESS  INSPIRES  CONTIDENCE 

that  buyers  not  only  appreciate  generosity  in  complaint  adjust- 
ments but,  usually,  they  show  that  apprect.ition. 

Recently  a  stationer  sent  to  a  paper  house  for  twenty  boxes 
of  fancy  stationery  to  be  delivered  to  a  firm  of  engravers.  Some 
little  time  after  the  goods  were  received  by  the  stationer  and 
had  been  delivered,  it  was  discovered  that  there  were  but  250 
iastead  of  500.  The  paper  house  insisted  that  500  had  been 
delivered  to  the  engraver  and  held  a  receipt.  It  was  for  "  One 
Package"  and  did  not  show  the  number  of  boxes  it  contained 
but  it  was  enough  to  shift  the  mistake  onto  the  engravers. 
After  thorough  investigation,  the  engraver  wrote  the  distant 
customer: 


lear  Sir: 

T?e  have  gone  over  our  records  carefully  tut  do  not  find 
any  evidence  of  mistake  or  carelessness  on  our  part.  Your  order 
was  to  engrave  the  announcements  received  from  the  Central  Paper 
Company  and  we  did  so.  The  records  show  that  only  250  went 
through  the  department.  As  the  paper  ia  very  different  from  what 
we  ordinarily  use,  it  is  Inconceivahle  that  part  of  the  stock 
was  mixed  with  another  order. 

As  far  as  we  can  see,  the  mistaie  was  not  ours,  hut  we 
can  readily  see  how  it  looks  to  you  as  if  we  had  "slipped  up"  on 
the  order.  Rather  than  to  let  you  have  such  an  impresoicn  we  are 
having  another  2.'i0  put  through  and  will  rush  them  to  you  hy  pre- 
paid express  tomorrow. 

We  sincerely  hope  this  will  be  satisfactory  to  you.  and 
assuring  you  of  our  regret  for  this  unfortunate  dolay.  we  are 

Very  truly  yours, 

THE  SMITH  &   VTSSTON  EUGRAVINO  CO 


The  spirit  of  fairness  shown  by  the  engravers  in  adjusting 
this  complaint  put  the  buyer  under  an  obligation  to  favor  that 
house.  He  not  only  wanted  to  swing  it  enough  business  to  make 
up  for  any  loss  on  the  disputed  order,,  but  he  was  convinced 
that  under  all  circumstances  he  would  be  "taken  care  of"  and, 
while  the  adjustment  was  expensive  for  the  engravers,  it  led  to 
$400.00  worth  of  business  during  the  next  two  years. 

The  cost  of  handling  a  complaint  should  not  be  considered 
merely  in  relation  to  the  order  to  which  it  refers;    it  should  be 


TIIE  ATTITUDE  IN  H.\NDLING  COMPLAINTS      173 

set  over  against  the  extension  of  good  will  and  the  insurance 
of  future  business. 

A  reputation  for  fair  adjustment  of  complaints  is  a  strong 
magnet  to  attract  future  orders.  A  liberal  guarantee  is  always 
a  good  selling  point.  One  successful  mail-order  house,  after 
excluding  the  "chronic  kickers,"  does  everything  possible  within 
the  bounds  of  reason  to  satisfy  ite  customers,  and  the  actual  cost 
in  money  and  time  is  charged  to  a  private  account  which  is 
labeled  "Advertising."  A  reputation  gained  through  such  a 
policy  proves  the  best  advertising  obtainable.  Such  a  reputation 
is  an  intangible,  yet  an  invaluable  asset. 

Another  example  of  what  a  clever  adjustment  of  a  complaint 
may  do  ir  the  way  of  bringing  back  old  customers  with  new 
business,  is  that  of  a  manufacturer  of  gas  lamps.  Frequently  a 
new  customer  complains  that  a  lamp  is  not  giving  satisfaction. 
From  the  nature  of  the  complaint,  the  manufacturer  usually 
knows  that  the  trouble  is  in  the  adjustment  of  the  burner. 

He  immediately  writes  a  tactfully  phrased  letter,  offering 
first  of  all,  to  take  back  the  lamp  and  refund  the  money  paid 
by  the  customer.  Further  down  in  the  letter  he  suggests  that 
the  complainant  try  a  different  adjustment  before  going  to  al!  the 
bother  of  taking  out  the  light.  He  carefully  outlines  the  method 
of  gas  regulation  by  which  the  best  results  can  be  obtained. 

In  nearly  every  case  the  customer  makes  the  adjustment 
suggested  and  finds  the  lamps  are  entirely  satisfactory.  Very 
often  an  order  follows  for  enough  lights  to  equip  a  customer's 
liome  or  place  of  business.  The  willingness  to  refund  the 
money  inspires  confidence  in  the  lamp  and  leads  to  a 
desire  to  make  a  new  triiil  under  different  conditions.  Usually 
additional  orders  result — but  here  is  the  big  point:  the  im- 
mediate, unrestricted  offer  to  refund  the  purchase  price  puts 
the  customer  in  the  right  frame  of  mind. 

Many  mail-order  houses  do  not  expect  to  make  a  profit  on 
initial  orders  because  of  the'  cost  of  getting  new  customers,  so 
an  established  trade  is  essential  to  success.  These  houses  look 
upon  the  adjustment  of  a  complaint  as  an  investment,  for  it  affords 
an  opportunity  to  inspire  good  will,  and  assure  steady  trade. 

One  suco3ssful  southern  mail-order  house  not  only  adjusts 
complaints  promptly,  but  it  actually  seeks  a  complaint  and 
follows  up  every  adjustment  until  a  reply  is  received  giving  assur" 
ance  that  the  customer  is  entirely  satisfied.    To  a  list  of  about 


174  A  SCHEME  FOR  GETTING  COMPLAINTS 

25,000  dormant  customers,  a  letler  was  written,  stating  that  the 
business  was  about  to  be  reorganized  and  the  departments  en- 
larged. It  mentioned  plans  for  improving  the  service  and  re- 
quested the  customer  to  submit  his  own  ideas  along  this  line. 
The  suggestion  was  made  that  if  tliere  had  been  anj-thing  un- 
satisfactory in  the  past,  the  house  should  be  told,  in  order  to 
prevent  a  recurrence  of  the  same  trouble.  A  stamped  envelope 
and  a  carefully  priced,  seasonable  circular  were  enclosed. 

The  result:  enough  cash  orders  came  in  to  pay  for  the 
mailing  and,  what  was  much  more  important,  the  concern  was 
reinstated  in  the  good  graces  of  several  thousand  customers. 

Another  concern,  manufacturing  cash  registers,  keeps  its  cus» 
iomers  friendly  by  requesting  immediate  notification  of  any  opera- 
tion troubles.    This  letter  was  mailed  to  buyers  in  one  territory: 


Dear  Sir: 

la  your  cash  register  working  eatlafactorily?  Does  it 
carry  out  the  system  that  you  planned  when  you  tiought  it? 

Does  it  accomplish  everything  you  want  it  to  do,  or  can 
you  suggest  some  improvement? 

The  year  ie  ahout  over,  and  tefore  it  closes  I  want  to 
be  sure  every  user  ie  thoroughly  satisfied. 

I  would  like  to  call  on  each  one  personally,  tut  as 
there  are  over  14,000  in  my  territory  it  would  require  too  much 
timo  td  gst  around. 

If  you  are  not  getting  just  the  results  you  want,  we 
«hall  he  glad  to  help  you  Kith  any  euggestiona  we  can  make  by 
letter,  and  have  a  representative  call  if  you  wish. 

You  may  chance  to  know  three  or  four  merchants  who  ought 
to  have  cash  registers,  or  who  might  be  interested  in  them.   I 
■ehould  appreciate  the  favor  very  much  If  you  would  kindly  send  ma 
their  naies.  This  information  will,  of  course,  be  treated  ia 
•confidence. 

A  stamped  postal  is  enclosed  for  your  convenlcnca  ia 
sending  in  these  names. 


Very  truly  yours. 

SiBtrict  Uanaser. 


KEEPLXG  CUSTOMERS  IN  A  FRIENDLY  MOOD     175 

And  this  letter,  together  with  A  stamped  return  post  card, 
while  costing  $420  just  for  posLige,  became  an  actual  producer 
of  "dollars  and  cents"  returns  by  the  cooperation  inspired  through 
the  frank  offer  of  assistance  and  willingness  to  guarantee  satis- 
faction along  with  the  sale  of  goods,  and  as  a  by-product  the 
company  received  the  names  of  several  hundred  prospects. 

Another  manufacturer,  selling  a  mechanical  specialty  by 
mail,  sends  out  periodic  letters  to  customers  asking  for  com- 
plaints, on  which  to  build  capital.     This  is  one  of  the  letters: 


Daar  Sir: 

Thia  1b  Juat  to  remind  you  that  our  Interest  In  the 
Duplicator  purchaaed  ty  you  will  continue  as  long  as  you  bava 
the  machine--that  if  you  are  not  getting  satiEfaotory  reaulta 
from  It,  we  wish  to  help  you  do  ao.  Unsatisfactory  aervioe  io 
cnnoying  to  you  and  injurious  to  the  reputation  of  tho  Duplica- 
tor. It  l8  unprofitable  alike  to  hoth  of  ua. 

Therefore,  if  you  are  haTing  AHY  TROUBLE,  Inform  ua 
J0ST  WHAT  IT  IS.  Read  the  enclosed  "trouble  torm"   carefully  and 
answer  the  questions  fully.   Strike  off  a,  copy  letter  from  the 
Duplicator  after  following  instructions  and  send  it  along  with 
your  letter.  Wo  make  no  ctiarse  for  any  asalatanoe  given  to 

oustomsrs. 

Very   truly  yours, 

THE  ACirS  lIAinj7ACTaai5(}  CO. 


Enclosed  with  this  letter  is  a  list  of  questions  relating  to 
difficulties  that  might  occur  when  the  machine  is  operated  by 
an  inexperienced  person.  The  service  offered  to  buyers  keeps 
them  interested  and  by  periodically  soliciting  complaints  and 
criticisms,  this  house  keeps  customers  "boosting"  its  product. 
One  specialty  house  follows  customers  up  at  intervals,  in  this 
same  way,  for  ten  years  after  they  have  purchased  goods. 

But  sometimes  even  requests  for  "kicks"  fail  to  bring  the 
reply  from  the  disgruntled  customers,  so  the  house  has  no  oppor- 
tunity to  show  its  v/illingness  to  make  satisfactory  adjustment 
of  their  troubles  and  bring  them  back  into  the  list  of  buyers. 
For  this  class  of  inactive  customers  some  strategy  is  necessary 
to  call  forth  a  response. 

One  house. tried  a  unique  scheme  to  get  the  customer  to 
State  his  case,  by  sending  out  this  letter: 


17G         A  CLEVER  SCHEME  TO  GET  COMPLAINTS 


"We  are  eorry  you  find  our  goods  unsatisfactory.  We 
would  not  have  you  diosatiefied  with  goods  or  service  i"jjr  many 
times  the  amount  of  the  order   So  won't  you  return  the  goods  and 
let  ua  refund  your  money?" 


When  the  customer,  in  surprise,  wrote  that  no  complaint 
had  been  made,  no  goods  ordert-d  or  receiscd,  the  house  immed- 
iately followed  up  the  reply  in  this  way: 


Dear  Sir 

We  have  investigated  your  record  with  our  house  and 
find,  as  you  say,  that  our  previous  letter  was  sent  to  you  by 
mistake.   But  I  don't  know  as  it  was  a  mlotakc  after  all,  for  you 
have  not  sent  us  an  order  for  quite  a  while,  and  we  are  wondering 
If  our  goods  or  service  have  been  in  any  way  unsatisfactory. 
Won't  you  tell  us  frankly? 

If  anything  has  not  been  satisfactory,  we  want  the 
privilege  of  making  it  right.   V7o  want  to  ho  sure  you  are  satis- 
fied and  to  renew  our  previous  pleasant  relations.   So  if  any- 
thing has  been  wrong,  tell  us  of  it  and  let  uo  adjust  the  matter. 
If  not,  won't  you  look  over  the  splendid  offerings  In  our  spring 
catalogue,  which  is  Just  off  the  press  and  a  copy  of  which  we  ara 
mailing  you? 

Most  cordially, 

WBSTBRH  RUBBER  COKPAilY. 

While  this  is  merely  a  scheme  and  might  not  be  approved  by 
some  firms,  it  brought  unusually  good  returns  to  this  house  and 
resulted  in  renewed  relations  with  a  large  number  of  dissat- 
isfied customei-s  whom  it  had  been  impossible  to  reach  in  any 
other  way. 

Soliciting  a  complaint,  when  it  may  be  turned  into  capital, 
may  prove  more  profitable  than  the  soliciting  of  an  order. 
The  receipt  of  a  complaint,  instead  of  being  a  necessary  evil, 
offers  an  opportunity  for  the  house  to  extend  its  service — to 
show  a  real  concern  for  the  customer's  welfare — an  interest 
beyond  the  sale.  And  this,  coming  from  the  distant  house  to 
a  customer,  unsolicited,  establishes  the  confidence  and  good  will 
that  builds  up  sales — and  pays  a  large  interest  on  the  money 
expended  in  adjustments. 


ThQ  House  Policy  in  Handling 
Routine  Complaints 

PART  XV     HANDUNG  THE  LONG-DISTANCE  CUSTOMER      CHAPTER  63 

NO  BUSINESS  can  operate  without  complaints 
and  the  shrewd  manager  aims  to  handle  them 
promptly,  satisfactorily  and  economically.  The 
majority  of  complaints  fall  into  definite  groups  and 
most  mail-order  houses  have  Fixed  Policies  for 
handling  iJiem,  Regardless  of  the  system  adopted, 
the  Distant  CusTOivtER  Must  be  Appeased,  and 
it  is  the  aH  of  the  letter  writer  to  accomplish  this 
quicJiiy  and  at  small  expense  to  the  house.  Some 
concerns  make  an  immediate  adjustment  and  then 
start  an  investigation  to  discover  the  source  of  the 
trouble;  others,  handling  special  products,  investi- 
gate before  making  an  adjustment.  This  chapter 
shows  how  these  two  attitudes  are  worked  out  and 
the  advantages  that  each  awards 

THERE  is  a  certain  class  of  houses  that  lose  all  interest 
ih  a  sale'  as  soon  as  a  customer's  money  is  received. 
But  every  successful  concern  has  adopted  this  policy: 
no  transaction  is  completed  until  the  man  who  spends  his 
money  is  satisfied.  A  dissatisfied  customer  is  a  serious 
menace;  he  makes  it  a  point  to  drive  business  away — he  is  the 
danger  signal  standing  between  the  house  and  future  sales. 

Usually  it  is  a  far  better  investment  to  satisfy  one  old  cus- 
tomer's claim  than  to  spend  the  same  amount  of  money  locating 
new  prospects.  And  it  is  a  better  advertisement,  for  the  assur- 
ance that  a  house  stands  back  of  its  goods  is  a  powerful  magnet 
in  pulling  orders.  The  adjustment  of  a  grievance  invariably 
leads  to  more  orders;    it  puts  "boosters"  into  the  field. 

177 


178     rnoMrT  attentiOxN  the  first  essential 

When  the  average  customer  makes  a  complaint,  it  is  of  vital 
importance  to  him;  if  he  holds  a  grievance,  it  is  a  serious  mat- 
ter, lie  may  be  to  blame;  you  may  have  been  negligent,  or 
a  third  party  may  have  been  responsible,  but  no  matter  where  the 
fault  lies  the  customer  wants  immediate  consideration. 

While  some  complaints  are  certain  to  come  from  unreason- 
able persons,  the  percentage  is  so  small  with  the  average  busi- 
ness, that  they  can  hardly  be  coasidered  in  adopting  a  uniform 
house-policy  for  handling  dissatisfied  customers.  Experience 
shows  that  the  buyer  is  an  exception  v/ho  cannot  be  reached  by 
the  right  kind  of  a  letter. 

The  tactless  letter  which  says,  "Your  claim  is  altogether 
unreasonable  and  could  not  be  conceded,"  vdll  only  aggravate 
wounded  feelings.  Bluntness,  indiilerence  and  intolerance  are 
like  so  many  slaps  in  the  face. 

But  on  the  other  hand,  if  the  angry  customer  gets  a  reply  of 
this  kind,  "We  are  very  glad  to  take  tiiis  matter  up  and  assure 
you  that  any  mistake  will  be  adjusted  promptly  and  satisfac- 
torily," it  immediately  takes  tlie  edge  off  his  temper.  A  spirit 
of  fairness  and  a  "we'll  do  our  part"   makes  adjustment  easy. 

It  is  necessary  to  the  satisfactory  settlement  of  a  complaint, 
to  reassure  the  claimant  immediately.  Promptness  in  replying 
is  the  first  essential.  If  a  customer  is  compelled  to  wait  for 
a  reply,  his  grievance  grows  rapidly.  And  the  longer  the 
delay  the  more  difficult  becomes  the  adjustment. 

One  hoiLse  turns  the  complaint-letter  over  at  once  to  a  special 
department.  Letters  are  answered  on  a  regular  time-schedule, 
and  the  complaint  is  acknowledged  promptly,  even  though 
actual  adjustment  may  require  considerable  time. 

Obviously  the  same  methods  of  handling  complaints  are 
not  applicable  to  all  businesses  but  there  is  one  fundamental 
principle;  keep  the  complainant  in  good  humor  and  satisfy  him 
as  far  as  consistent  with  circumstances  and  house-policy. 

The  manner  of  settlement  depends  upon  whether  the 
cause  of  the  complaint  is  readily  traceable  or  whether  it 
needs  careful  investigation.  The  most  familiar  claims  come 
under  a  "routine  complaint"  classification,  for  which  there 
should  be  a  settled  policy  of  settlement.  A  certain  number 
of  these  complaints  are  apparently  inevitable  and  can  be 
handled  by  a  rotitine  policy.  They  may  be  grouped  in  six 
divisions:    delayed     shipments,    goods    damaged    in    transit. 


COMPLAD^S  HANDLED  BY  FIXED  POLICIES       179 

goods  not  as  ordered,  goods  unsatisfactory,  shortage,  and  ship- 
ment lost. 

*lf  the  remedy  for  any  of  these  difficulties  may  be  applied 
quickly,  form-letters  are  usually  most  economical  and  most 
convenient.  But  if  the  complaint  demands  any  particular 
trcatraenj;,  personally  dictated  letters  handled  only  by  corre- 
spondents trained  for  this  work  are  essential.  The  use  of  a 
form-letter  in  such  cases  would  merely  increase  the  irritatioa 
and  the  reply  of  a  tactless  letter-writer  would  only  make 
things  worse. 

In  the  handling  of  any  complaint,  whether  just  or  unreason- 
able, the  aim  is  to  settle  it  with  the  least  expense.  So  in  all 
letters  that  deal  with  complaints  the  underlying  principle  is  to 
appease  the  customer  quickly  and  at  a  small  cost,  and  at 
the  same  time  strengthen  the  bond  of  interest. 

A  tiefinite  policy  is  usually  followed  in  handling  all  routine 
complaints.  For  delayed  shipment  complaints  one  house  finds  a 
form-letter  of  this  kind  most  effective: 


"We  are  sincerely  sorry  that  there  has  been  delay  in 
your  shipment  and  we  want  to  thank  you  for  notifying  us  so 
promptly.  At  the  same  time  please  accept  our  assurance  of  an  im- 
Dedlate  Investigation.  We  will  trace  the  shipment  at  once. 
Won't  you  tell  us  if  you  are  at  any  immediate  inconvenience  as 
the  result  of  the  delay?" 


When  the  cause  of  the  delay  has  been  traced  no  time  is 
tost  in  notifying  the  customer.  In  case  the  fault  is  that  of 
the  house,  the  customer  is  told  so  frankly.  The  letter  asks 
if  he  can  use  the  goods  and  a  promise  of  better  service  is 
made.  If  the  customer  refuses  to  accept  this  proposition,  some 
inducement  is  frequently  offered,  but  if  he  still  refuses,  his 
money  is  immediately  returned. 

Even  though  the  difficulty  arises  from  no  fault  of  the  house, 
a  willingness  should  be  shown  to  assist  the  customer  in  every 
possible  way  in  getting  satisfaction  for  his  inconvenience 
or  loss. 

It  is  a  common  experience  that  a  short,  snappy  letter,  evea 
though  it  shows  a  warm  interest  in  the  affairs  of  the  customer, 
is  never  as  effective  as  a  lengthy  personal  letter  taking  up 
every  detail  of  the  case.     Here  is  one  place  where  brevity 


180  ^.lAIONG  SETTLEAIENT  WITH  CARRIERS 

should    be    avoided.     This    is    especially   true   with  country 
and  small-town  customers.     One  letter  of  this  kind  opens: 

"A  careful  Investigation  shows  us  that  your  order  of 
the  19th,  :7hich  you  say  has  not  teen  received,  was  filled  and 
turned  over  to  the  Blank  Express  Co. ,  the  25th--the  same  day  It 
■was  received.  The  enclosed  receipt  will  show  you  how  carefully 
ve,  as  shippers,  make  consignments." 


Then  the  letter  continues  with  a  detailed  explanation  of  why 
delays  are  often  inevitable  with  the  transportation  companies. 
This  house  offers,  in  the  letter,  to  stand  back  of  the  customer 
to  insure  that  he  loses  nothing.  It  agrees,  upon  the  return  of  a 
notation  from  the  local  express  agent  stating  that  the  goods  have 
not  arrived,  either  to  duplicate  the  goods  or  refund  the  money. 
This  is  adjustment  beyond  the  point  where  the  house  is  responsi- 
ble, but  it  has  proved  a  wise  policy  since  it  gives  a  confidence 
in  the  house  that  insures  additional  sales. 

When  goods  are  damaged  in  transit,  as  the  result  of  care- 
lessness or  neglect  of  the  transportation  company,  or  as  the 
result  of  imperfect  packing  at  the  house,  the  letter  acknowledging 
the  complaint  usually  paves  the  way  for  a  quick  settlement,  at 
minimum  cost.  Many  concerns  ask  the  customer  to  secure 
the  local  freight  agent's  notation  of  the  amount  of  damage  and 
the  condition  of  the  goods  on  their  arrival.  This  is  made  on 
the  bill  of  lading  and  the  bill  is  returned  to  the  house,  thus 
avoiding  any  question  that  might  arise  over  the  amount  involved. 

With  some  articles,  the  damage  may  be  repaired  by  the  cus- 
tomer, after  an  estimate  of  the  probable  cost  has  been  accepted, 
and  the  expense  borne  either  directly  or  indirectly  by  the  house. 
In  any  case,  it  has  been  found  most  satisfactory  to  pay  such 
claim  at  once,  looking  to  the  transportation  company  to  make 
reimbursement  later  if  it  is  responsible  for  the  damage.  With 
mail-order  houses  where  re-orders  are  an  important  factor 
in  the  business,  a  cheerfully  given  refund  or  an  entirely  new 
shipment,  when  the  damaged  goods  are  useless,  is  practically 
the  only  thing  to  do. 

Sometimes  a  fair  valuation  may  be  placed  upon  the  damaged 
goods  and  the  customer  may  be  asked  to  pay  only  for  value  re- 
ceived. Transportation  company  reports  are  often  long  delayed 
and  settlements  slow,  so  it  is  usually  best  to  make  immediat* 


WHEN  THE  HOUSE  TAKES  THE  BLAJVIE  181 

adjustments  to  show  the  customer  that  the  house  wants  to  help 
him — the  house  can  better  afford  to  wait  for  the  settlement 
with  the  carrier. 

In  handling  the' complaint  on  goods  that  are  not  as  ordered 
to  often  an  attempt  is  made  to  convince  the  customer  by  argu- 
ment' that  he  should  accept  them.  This  is  now  considered  a  poor 
business  policy  by  the  better  class  of  mail-order  managers. 
While  such  complaints  often  arise  through  some  fault  of  the  cus- 
tomer in  ordering — which  the  investigation  readily  proves — ex- 
perience shows  that  the  most  profitable  method  of  settlement 
in  the  long  run,  is  to  exchange  the  goods  at  the  expense  of  the 
house.    A  letter  of  this  kind  is  usually  most  effective: 


laar  Sir: 

'Wer  are  very  aorry  that  you  find  tho  gooda  are  not  as 
yt'U  expected.  We  htve  looked  up  the  order  and  find  that  you  in- 
advertently gave  the  wrong  numher,  as  you  may  readily  see  by  tha- 
enclosed  duplicate.  While  we  do  not  feel  that  we  are  in  any  way 
at  fault,  we  want  to  thank  you  Tor  giving  U3  the  opportunity  of 
caking  an  explanation  and  of  helping  you  out.  If  the  goods  are  of 
no  use  to  you  we  will  gladly  exchange  them,  for  we  would  not  hav9 
ycu  dissatisfied  for  many  times  the  small  coct  of  shipment 

charges 

Very  truly  yours. 


And  many  times  the  customer  will  keep  the  goods,  rather 
than  ask  so  considerate  a  house  to  bear  an  unjust  expense; 
cr  he  will  at  least  offer  to  pay  the  transportation  cost. 

But  if  the  house  is  at  fault  through  some  mistake  in  the 
shipping  department,  it  is  usually  advisable  to  tell  the  customer 
frankly.  Point  out  to  him  that,  even  with  the  most  careful  at- 
tention, mistJikes  are  sometimes  inevitable;  that  the  house  sin- 
cerely regrets  any  inconvenience  that  may  have  been  incurred 
through  an  employee's  mistake;  that  if  the  customer  cannot 
use  the  goods  they  will  be  exchanged  without  expense  to  him, 
and  that  in  the  future  every  effort  will  be  made  to  guard  against 
similar  trouble.  Such  a  letter  is  certain  to  give  the  customer 
a  high  opinion  of  tlie  house  and  to  make  him  a  warmer  friend 
than  before. 


183  CASH  DISCOUNT  OFTEN  EFFECTIVE 


Sometimes  a  discount  offered  on  the  goods  sent  will  induce 
the  customer  to  use  them,  even  though  they  are  not  exactly  as 
ordered,  and  this  is  often  a  more  profitable  method  of  settlement 
because  of  the  expense  of  having  the  goods  returned.  And  a 
small  reduction  in  price  will  often  settle  a  claim  that  bears  all 
the  ear-marks  of  an  ugly  situation. 

The  claim  that  the  goods  are  unsatisfactory  is  the  most 
difiBcult  to  handle.  It  requires  tact  of  the  highest  sort.  So  the 
acknowledgment  letter  skilfully  aims  to  ward  off  antagonism 
and  then  discover  exactly  where  the  customer  finds  a  fault. 
Often  it  is  merely  a  matter  of  opinion,  and  a  little  tactful  ex- 
planation in  the  second  letter  will  end  the  matter.  Perhaps  the 
customer  fails  to  understand  the  nature  and  operation  of  the 
article  or  its  proper  apphcalion.  Then  a  letter  educating  him 
to  its  qualities  will  restore  him  to  a  satisfied  mood: 


Dear  Sir 

Wo  appreciate  your  f&lrnesa.  Mr  J    nee.  In  advising  ua 
of  your  difficulty  in  malting  Pacific  Lead  c  .ver  your  surface 
well.   With  painters  who  are  accustomed  to  mixing  ordinary  leads 
we  can  readily  see  hov  easy  It  te  to  go  wrong  when  first  mix- 
ing Pacific. 

Pacific  Le&d  Is  ground  eo  ouch  finer  than  other  leads 
and  It  has  a  eo  much  better  body  that  it  offers  more  resistance 
to  the  mixing  paddle  and  makes  the  painter  think  he  has  not  used 
enough  oil.  and  consequently,  he  continues  to  pour  In  the  oil 
until  he  has  added  eo  much  that  It  lm>alr8  the  body  of  his  paint. 

If  you  will  use  precisely  the  same  amount  of  oil  by 
meaeure  with  Pacific  Lead  as  you  would  with  ordinary  brands  when 
first  mixing  Pacific,  you  will  find  that  our  product  will  cover' 
far  better  than  the  other  leads   Gradually  you  can  add  more  oil 
to  your  subseQuent  mixings  of  Pacific  when  you  have  become  accus- 
tomed to  tho  feel  of  the  paddle  In  Pacific  Lead.   You  will  then 
have  a  paint  that  will  not  only  cover  fully  one-quarter  more  sur- 
faeo  than  the  brand  you  have  been  using,  but  one  that  will  spread 
easier  under  the  brush,  give  you  a  decidedly  whiter  Job  and 
prove  more  durable. 

If  there  are  any  other  points  lu  t-..o  connection  that 
are  can  advise  you  on.  don't  hesitate  to  call  on  us. 

Very  truly  yours. 

PACIFIC  LBAD  COMPAlTf. 


MAKING  IMMEDIATE  ADJUSTMENTS  183 

With  a  practical  explanation  the  correspondent  attempts  to 
bring  the  customer  around  to  the  house-attitude  in  tlie  matter. 
If  the  goods  are  obviously  at  fault  in  some  particular,  an  imme- 
diate reimbursement  of  money  paid  and  expenses  incurred  is 
offered  and  every  effort  made  to  show  that  the  house  aims  to  he 
fair  iu  all  its  dealings.  If  the  fault  is  merely  an  imaginary  one, 
the  customer  is  treated  as  though  he  were  as  fair-minded  as 
the  house,  and  is  assured  that  the  trouble  is  not  at  all  seri- 
ous. But  the  customer  is  never  left  while  he  feels  that  he  has 
been  treated  unjustly.  If  he  refuses,  absolutely,  to  be  satisfied, 
he  is  asked  to  return  the  goods. 

This,  method  of  handling  the  dissatisfied  customer,  with  the 
aver.-^ge  mail-order  house,  is  profitable  because  of  the  adver- 
tising such  a  policy  is  certain  to  create.  But  it  may  not  be 
adapted  to  the  concern  selling  expensive  specialties. 

In  handling  and  adjusting  the  shortage  claim  it  is  vitally 
important  not  to  irritate  customers  through  letters  that  carry 
an  impression  of  suspicion.  The  validity  of  the  complaint,  for 
policy's  sake,  must  be  conceded.  Wbile  the  house  usually  finds 
an  investigation  necessary  to  avoid  a  recurrence  of  similar 
claims,  this  should  be  made  in  a  way  that  will  not  give  offense. 
Allowing  such  claims  is  almost  always  ad\isable. 

Repeated  complaints  from  the  same  customer  are  thoroughly 
investigated  by  most  concerns,  for  a  dishonest  customer  is 
seldom  a  profitable  one;  he  should  be  eliminated  from  the 
customer-file  or  kept  under  a  special  "Black  List." 

It  is  the  policy  of  one  house  to  refill  all  orders  as  soon  as 
it  learns  that  the  goods  have  failed  to  show  up,  provided  the 
claimant  secures  the  signed  notation  of  the  local  express  or 
freight  agent  that  a  shipment  bag  not  been  received.  There  is 
little  chance  of  heavy  losses  to  the  company  hj  this  policy,  for,  in 
case  the  goods  cannot  be  located,  the  transportation  company  is 
of  course  responsible  and  the  additional  transportation  charges, 
in  case  the  shipment  is  found  later  on,  is  compensated  for  by 
the  good  will  created  on  the  part  of  the  customer^ 

With  routine  complaints  an  immediate  adjustment  and, 
if  necessary,  a  later  investigation,  is  generally  accepted '  as 
the  most  profitable  policy,  if  the  amount  involved  is  not  too 
large.  But  when  an  adjustment  means  the  expenditure  of  a 
considerable  sum  it  is  necessary  for  the  house  to  know  all  the 
details  of  the  trouble  before  making^  or  refusing  a  settlement. 


1S4  HANDLING  THE  BIG  COMPLAINT 

A   careful   investigatiou   usually   indicates   tlie   most  cfTcctive 
policy  to  adopt. 

As  in  the  sctllcment  of  the  small  routine  complaint,  the  mak- 
ing of  a  big  adjustment  is  strongly  influenced  by  the  attitude 
of  the  house  in  its  letters.  •  The  bu}'cr  of  the  goods  always  wants 
assurance  that  his  claim  will  receive  immediate  attention.  So 
the  first  purpose  of  the  letter  in  handling  detailed  investiga- 
tions and  making  big  adjustments,  is  to  show  the  willingness  of 
the  house  to  be  fair  and  just;  to  pave  the  way  for  such  steps  as 
are  necessary  in  the  investigation  and  to  keep  the  customer  in 
good  humor  until  some  definite  action  can  be  taken. 

The  actual  investigation  and  adjustment  of  complaints 
on  big  sales  should  be  handled  by  a  house-representative  or 
by  a  disinterested  third  party.  One  house  that  has  estab- 
lished an  enviable  reputation  for  fairness  and  equality  in  adjust- 
ment matters,  immediately  upon  tlie  rcccij>t  of  the  complaint, 
mails  a  letter  expressing  regret  that  there  is  cause  for  dissatis- 
faction, assures  an  immediate  investigation,  and  promises  an 
early  report.  This  first  letter  plays  for  time  and  aims  to  put 
the  customer  in  the  right  mental  attitude. 

Then,  if  the  customer  is  not  too  far  away,  a  representa- 
tive is  sent  out  to  make  a  personal  investigation.  •  Otherwise 
the  services  of  a  local  attorney  are  secured  and  the  investigation 
made  through  him. 

If  this  investigation  shows  a  fault  in  the  article  sold — some 
imperfection  for  which  the  house  is  to  blame — an  immediate 
allowance  is  granted  on  the  basis  of  the  amount  of  damage  in 
the  goods  or  tlic  inconvenience  incurred  by  the  customer,  or,  if 
unusable,  the  goods  are  replaced  or  purchase  price  refunded. 

In  case  a  transportation  company  is  at  fault,  the  customer  is 
so  informed  and  every  assistance  possible  is  given  him  in  secur- 
ing satisfaction  for  his  inconvenience  or  loss. 

But  v/here  the  customer  is  at  fault,  or  where  the  claim  13 
obviously  unjust,  the  policy  adopted  depends  largely  upon 
whether  the  house,  for  the  sake  of  future  business,  can  afford 
to  assume  the  claim,  or  stand  pat  on  its  rights  in  the  case. 

Where  the  refusal  of  a  settlement  may  mean  a  big  loss  in 
future  business,  it  is  often  deemed  advisable  to  make  an  allow- 
ance, to  meet  the  customer  half-way,  or  to  cut  a  certain  percent* 
age  from  the  bill  and  "charge  it  to  advertising."  But  the  letter 
granting  this  allowance  should  be  so  worded  as  to  ward  off 


SATISFACTION  NECESSAIIY  FOR  GROWTH  185 

any  impression  that  a  "kick"  is  always  followed  by  a  shading 
of  the  bill.  The  position  taken  by  one  house  is  clearly  pre- 
sented bv  such  letter  as  this: 


"While  we  cannot  feci  in  any  way  responsible,  we  rant 
to  ao  ell  in  our  power  to  help  you.   We  aim  to  maintain  the  most 
pleasant  relations  with  all  our  customers,  and  believe  our  prev- 
iouo  more  than  satisfactory  relations  warrant  an  exception  to 
our  usual  rule  In  this  particular  case.   So  we  have  decided  to 
bear  a  part  of  the  cost  and  allow  you  ten  per  cent  on  your  bill  " 


If  a  claim  is  refused,  it  is  always  desirable  to  give  the 
customer  the  impression  that  the  house  cannot  consistently  con- 
ceed  his  demands.  This  letter  must  be  based  entirely  upon  the 
interests  of  the  customer,  and  be  made  so  reasonable  that  he 
will  be  convinced  of  its  fairness. 

By  calling  his  attention  to  the  position  of  the  house,  and 
then  showing  him  the  difference  between  its  estabhshed  policy 
and  his  position;  by  showing  him  the  damage  the  granting  of  his 
demands  might  do  the  business;  and  lastly,  by  thanking  him  for 
the  opportunity  of  making  an  explanation,  the  "rough  edges" 
are  smoothed  over  and  he  usually  remains  a  loyal  customer. 

A  very  small  percentage  of  big  adjustments  can  be  handled 
by  letter.  Many  concerns,  selling  delicate  or  very  expensive 
specialties,  maintain  traveling  adjusters  who  settle  claims 
in  the  most  profitable  manner  for  the  house.  But  in  all  cases, 
the  house  backs  up  the  adjuster  with  letters,  the  purpose  of 
which  is  to  make  his  settlement  more  satisfactory. 

Since  there  are  very  few  business  concerns  today  that  are 
without  competition,  this  fact  must  at  all  times  strongly  infjuence 
the  method  of  handling  a  complaint:  no  one  but  the  man  at 
the  postoffice  can  be  indifferent  to  future  trade.  The  man  v/ho 
sells  merchandise  of  any  kind  must  seek  at  all  times  to  satisfy; 
he  must  appreciate  the  fact  that  considerate  and  sympathetic 
treatment  of  customers  is  the  only  sure  way  to  build  business 
on  a  sound  foundation;  and  he  must  remember  that  the  satis- 
factory settlement  of  a  real  complaint  is  just  as  important  to 
the  house  that  wants  to  grow,  as  the  filling  of  an  order. 


Finding  The  Right  Attitude 
Toward  COMPLAINTS 

PART  XV     HANDLING  THE  LONG-DISTANCE  CUSTOMER    CHAPTER  09 

IN  HANDLING  the  distant  customer  who  has  a 

frievancey  there  are  two  factors  that  will  determine 
is  future  relations  with  the  house:  the  satisfactory 
adjustment  of  the  complaint  and  the  attitude 
ASSUMED  in  maJcing  the  adjustment.  And  in  many 
cases  the  attitude  show7i  in  the  letters  are  the  dom- 
inant factor y  for  if  the  customer  is  convinced  that 
the  house  intends  to  treat  him  honestly  and  fairly, 
satisfactory  adjustment  is  a  matter  of  detail. 
Whether  adjustment  should  be  made  before  inves- 
tigation or  whether  investigation  should  precede 
adjustment,  and  the  attitude  to  assume,  are  the 
practical  svbjects  taken  up  in  this  chapter 

AVE  you  not  at  some  time  returned  to  a  dealer  an  arti- 
cle that  was  not  satisfactory  and  had  him  grumble 
about  it  and  then  slap  down  the  money  on  the  counter 
in  a  way  that  hurt  more  than  as  if  he  had  refused  to  take  back 
the  goods  ?  You  got  a  settlement  just  as  far  as  money  would 
go  but  you  walked  out  of  the  store  vowing  never  to  buy 
another  thing  there.  He  squared  things  with  your  purse  but 
not  with  your  ideas  of  good  business;  he  entirely  overlooked 
your  mental  attitude;  he  lost  a  great  opportunity  to  win  your 
loyalty — to  take  out  insurance  on  your  future  business. 

Thb  policy  is  even  more  disastrous  when  applied  in  letters 
and  it  has  taken  some  mail-order  men  a  long  time  to  learn 
that  if  a  distant  customer  can  be  brought  into  the  right  mental 
attitude  toward  the  house,  the  actual  adjustment  of  his  com-. 


SPECIFIC  AND  INVIOLADLE  COMPLAINT  RULES    187 

plaint  is  a  matter  of  detail — the  pocketbook  is  easily  appeased. 

A  mail-order  house  that  had  imperceptibly  developed  a  los- 
ing attitude  toward  complaints,  finally  found  themselves  in  the 
light  of  retrospection,  the  result  of  which  was  the  organization 
of  a  special  complaint  department  with  three  specific  and  in- 
violable rules:  promptness  in  answering  every  complaint;  a  care- 
ful consideration  of  the  reasons  for  the  complaint  and  probable 
mentiil  attitude  of  the  complainant  so  tliat  the  reply  can  be 
shaped  to  carry  tlie  impression  of  sympathetic  and  personal 
interest;  and  third,  an  unwavering  truthfulness  and  dignity  that 
will  create  respect  and  tighten  the  bonds  between  customer 
and  house. 

Sooner  or  later  every  successful  mail-order  house  discovers 
this  fundamental  idea  upon  which  effective  handling  of  com- 
plaints must  be  builded,  whether  they  are  insignificant  or  im- 
portant, whether  faults  of  the  seller,  or  of  the  buyer,  or  due  to 
outside  influences  over  which  there  can  be  no  direct  control, 
the  first  thing  to  do  is  to  impress  upon  the  customer  the  intention 
of  the  house  to  treat  him  fairly  and  honestly.  The  next  thing 
is  to  impress  upon  the  correspondents  the  fact  that  the-  cus- 
tomer's interests  must  receive  full  and  immediate  consideration. 
The  house  under  no  consideration  should  try  to  cover  up  or 
ffloss  over  its  own  mistakes  or  find  fault  with  the  customer  for  his 

o 

errors. 

A  mail-order  house  sold  a  go-cart  to  a  customer  in  Min- 
nesota and  complaint  was  made  that  is  was  badly  marred  and 
scratched.  The  correspondent  to  whom  the  letter  was  re- 
ferred wrote: 


Dear  Sir: 

We  are  surprised  that  you  should  try  to  hold  us  respon- 
eitle  for  tha  damage  to  your  go-cart  for  we  have  an  inspection 
service  to  guard  against  imperfect  goods  going  out.  Our  packers 
know  just  how  to  ship  furniture  so  it  will  not  te  marred  and  I 
feci  certain  that  the  damage  was  done  in  uncrating.  Protiably  a 
nail  was  dragged  across  it  or  something  of  that  kind  and  now  you 
look  to  U3  to  make  it  good. 

Under  the  circumstances  it  seems  to  us  you  ought  to  get 
some  furniture  polish  and  it  is  pro'ba'ble  a  few  minutes  ru'bhing 
would  make  the  go-cart  look  as  good  as  new.  Tou  can  see  what  u 
t)ig  expense  it  would  be  to  us  to  have  the  cart  shippea  back  and 


188  SHREWD  HANDLING  OF  A  COMPLAINT 

another  one  delivered  and  in  view  of  the  fact  that  the  damage  was 
prohably  dona  in  unpacking,  we  do  not  think  you  should  expect  it. 

Very  truly  yours, 

TEE  UID-TE8T2IR3  StJPPLT  HOOSS. 


It  happened  that  a  neighbor  about  that  time  ordered  a 
go-cart  from  a  competing  house  and  through  a  strange  co- 
incident, it,  too,  was  marred.  The  correspondent  replied  to 
the  complaint: 


Doar  Sir: 

You  don't  Icr.ow  how  Euch  we  regret  that  the  go-cart 
reached  you  in  a  damaged  condition.  While  our  records  show  that 
the  cart  was  all  right  in  every  way  when  it  went  through  the  in- 
spection dspartment.  yet  under  no  circumstances  would  we  want 
Vou  to  keejj  anythiae  from  our  house  that  is  unsatisfactory. 

Prom  what  you  write,  1  infer  that  tha  cart  is  only 
carred  and  scratched  and  I  have  not  the  least  douht  that  a  litti.9 
cf  our  Charter  Oak  Furniture  Polish  will  give  just  as  fine  a 
finish  as  when  the  cart  left  the  factory.  We  are  sending  you  a 
bottle  and  polishing  cloth,  and  prohahly  five  nlautes*  work 
s?ill  make  the  cart  look  as  good  as  new. 

But  if  if  does  not,  we  will  make  it  rig'nt.  Either  we 
will  make  you  a  cash  rebate  and  you  can  keep  the  cart,  or  you  oaa 
return  it  at  our  expense  and  we  will  ship  you  a  new  ono,  express 
prepaid. 

Won't  you  try  the  polish  at  once  and  let  us  know  If  it 
is  satisfactory?  If  it  is,  it.  will  save  you  an  annoying  delay  ia 
getting  another  cart.  Please  write  us  regarding  it  at  once. 

Very  truly  yours, 

BROra  &  BHOWIl. 

By  ^^7^^..**  /4»-*^<i~" 

Sales  Uanager* 


In  the  first  case,  the  customer  was  not  in  a  very  good  mood 
when  he  made  his  complaint  and  the  letter  he  received  rubbed 
him  the  wrong  way — put  him  in  a  frame  of  mind  where  noth- 
ing would  satisfy  him.     He  wanted  his  pound  of  flesh.    The 


CALLING  OUT  WARRANTED  COMPLAINl^  189 

cart  had  been  sold  under  a  strict  guarantee  and  eventually  the 
company  hud  to  refund  the  purchase  price;  it  was  out  the 
transportation  charges  both  ways  and  it  lost  a  good  customer- 
all  on  account  of  a  wrong  attitude  in  handling  the  complaint. 

Meanwhile  his  neighbor,  put  in  the  right  mood  by  the  spirit 
of  fairness  and  the  emphatic  assurance  that  his  trouble  would 
be  fixed  up  at  any  cost,  trial  the  furniture  polish,  made  the  car 
look  all  right  and  told  all  his  friends,  "Brown  &  Brown  certainly 
treat  their  customers  white." 

These  two  cases,  happening  to  neighbors  at  the  same  time, 
illustrate  the  difference  in  attitudes  of  two  houses.  One  house 
is  struggling  along,  hardly  holding  its  own;  the  oilier  has 
trouble  in  extending  its  organization  fast  enough  to  keep  up 
with  the  growth  of  the  business.  Both  houses  are  strong  on 
guarantees  of  satisfaction:  the  only  radical  difierence  betweea 
them  is  their  attitude  in  handling  long-distance  customers. 

A  new  concern  is  apt  to  be  over-suspicious  of  the  complaints 
from  unseen  customers — distrustful  of  tliQ  motive,  but  a  convic- 
tion of  experience  is  that  a  very  small  ratio  of  false  complaints 
reach  the  average  house,  especially  if  the  trade  is  in  the  rural 
districts.  One  mail-order  house  estimates  that  ninety-nine  per 
cent  of  its  customers  are  honest,  and  according  to  its  records 
not  more  than  one-tenth  of  one  per  cent  of  the  patrons  make  false 
claims  intentionally.  Since  it  is  better  that  crooked  customers 
should  be  disposed  of  at  once,  and  as  the  number  b  so  small,  it 
follows  that  the  complaint  department  has  a  vital  work — a  con- 
structive function  in  developing  a  business.  On  the  proper 
attitude  toward  complaints  and  a  satisfactory  policy  of  hand- 
ling them,  may  depend  the  growth  of  the  house,  for  unadjusted 
complaints  will  in  time  ruin  any  business. 

So  with  that  mail-order  house  it  is  very  necessary  to  main- 
tain a  relationship  between  house  and  customer  that  will  call 
out  all  complaints  whether  they  are  justified  or  not.  If  the 
complaint  is  warranted,  the  house  should  know  it  and  adjust  it 
and  if  it  is  a  fancied  grievance  it  is  important  to  restore 
cordial  relations. 

Because  of  the  importance  of  this  mental  atmosphere,  the 
policy  is  often  adopted  of  seeking  complaints  and  making  adjust- 
ments in  order  to  impress  upon  the  minds  of  patrons  the  desire 
to  do  the  right  thing  at  all  times.  To  emphasize  this  position  the 
correspondence,    complaint   and    advertising   departments   co- 


190       LEARNING  THE  COiMPLAINANT'S  ATTITUDE 

operate  with  each  other.  Letters  contain  the  reiterated  assur- 
ance that  the  liouse  guarantees  satisfaction  and  considers  a 
complaint  a  real  favor.  This  atmosphere  permeates  the  cor- 
respondence and  then  back  of  it  all  is  a  rigid  inspection  that 
assures  absolute  reliability  of  the  product.  Ready  adjustments 
are  often  the  finest  kind  of  advertisement — they  insure  satis- 
faction and  a  continued  good  will  which  is  an  intangible  but 
very  real  asset. 

To  get  the  mental  attitude  and  view-point  of  the  customer  13 
obviously  one  of  the  most  important  considerations.  Many 
complaint-corresjx)ndents  brush  aside  all  immediate  surround- 
ings and  imagine  themselves  sitting  in  the  customer's  chair  and 
in  his  own  mood.    Then  these  four  questions  are  Considered: 

First.     Has  he  any  just  cause  for  complaint? 

Second.  Is  he  writing  through  ignorance  of  some  condition 
or  circumstance? 

Third.  Is  anyone  in  this  ofiSce  either  wholly  or  partly  tO 
blame  for  the  complaint? 

Fourth.     Is  he  trying  to  impose  on  us  ? 

Usually  these  questions,  if  put  honestly,  can  be  decided 
definitely,  yes  or  no.  And  they  are  applicable  to  prac- 
tically every  business.  To  dodge  them  is  a  confession  of  in- 
efficiency. They  are  the  test  of  ability  to  write  a  fair,  reason- 
able letter.  If  the  customer  has  a  just  cause  for  complaint, 
he  must  be  handled  from  that  standpoint  alone.  If  he  has 
not,  the  proposition  is  more  difficult. 

One  house  finds  it  well  to  begin  all  letters,  whether  in  answer 
to  a  just  or  an  unjust  complaint,  in  one  of  these  ways: 

"We  are  sorry  you  have  been  subjected  to  any  annoyance;'* 
"We  understand  your  feelings  on  the  subject;"  "We  regret  that 
we  cannot  see  you  in  person  to  talk  the  matter  over."  The 
question  is  always  taken  up  from  the  customer's  standpoint, 
agreeing  with  him,  taking  the  fight  out  of  him  in  the  very  first 
sentences. 

"If  we  were  buying,"  is  the  attitude  of  these  letters,  "we 
should  no  doubt  feel  the  same  way." 

Get  at  the  complainant  in  the  beginning,  secure  his  atten- 
tion and  good  will  as  a  foundation  for  what  you  hope  to  impress 
upon  him  later.  This  is  the  secret  of  good  complaint-letter 
writing,  just  as  it  is  of  good  salesmanship:  his  own  interests^ 
not  yours,  is  the  shortest  route  to  the  desired  ends. 


STULTIFYING  EFFECT  OF  "COARSE"  T\ORK        191 

There  is  no  doubt  about  the  desirability  of  taking  the  edge 
off  the  complainant's  temper  by  starting  with  a  word  of  sympa- 
thy, agreeing  with  him,  but  the  correspondent  who  does  not  un- 
derstand the  working  of  the  human  mind  may  spoil  the  effect  of 
his  letter  by  "coarse"  work. 

A  new  correspondent  in  a  manufacturing  Tiouse  selling  by 
mail  was  told  to  take  the  "you  are  right"  attitude  in  answering 
all  complaint  letters  and  wrote: 


"We  do  not  tlaae  you  for  writing  as  you  did  In  your 
letter  of  the  3rd  and  we  resret  that  the  new  franklin  Sewing 
VaohlBS  Is  not  provlns  eatlafaotory. 

But  wc  find  tho  Bhipaant  left  here  all  right  and  the 
trouble  must  be  at  your  end  of  the  line.   1  have  no  douht  It  le 
due  to  the  fact  that  you  have  not  adjusted  it  properly.  We  know 
there  was  no  serious  def'aot  In  the  machine.   I  take  it  that  the 
trouhl-B  i-ff  due  entirely  to  Igr.oranoe  In  operation." 


The  head  correspondent  pointed  out  the  stultifying  effect  of 
&  letter  where  in  one  paragraph  the  complainant  is  assured 
that  he  is  not  to  blame  and  then  in  the  next  paragraph  bluntly 
told  that  the  fault  is  all  his.  And  this  is  the  trouble  with  so 
many  letter  writers:  they  get  a  more  or  less  clear  conception  of 
some  fundamental  principle  but  apply  it  so  crudely  that  the  effect 
is  entirely  lost.  In  this  particular  case  the  head  correspondent 
re-dictated  the  two  opening  paragraphs: 


"Thank  you  for  calling  our  attention  to  the  trouble  yott 
are  having  with  your  new  Franklin  Sewing  Uashine.  We  always  want 
our  oustomers  to  let  us  know  at  once  when  anything  is  wrong,  and 
nothing  could  please  us  mora  than  to  have  you  write  us  In  this 
frank  manner. 

"It  is  hard  to  say  definitely  what  causes  tho  trouble 
eat  we  oaji  assure  you  that  it  is  nothing  serious  as  all  machinea 
are  tried  out  before  shipping.  Evidently  in  handling  in  tho 
train  or  unpacking  soma  little  part  worked  loose  or  worked  tight 
and  all  that  is  needed  is  a  slight  adjustment.  The  beauty  of  the 
j?ranklin  is  that  it  la  so  simple  in  its  meohanlem  that  you  will 
be  able  to  adjust  it  Just  as  easily  as  our  highest  priced 
uachinist. " 


192  HANDLING  UNFAIR  COMPLAINTS 

Then  the  letter  went  on  to  give  directions  for  locating  the 
seat  of  the  trouble  and  remedying  it. 

Here  again  it  was  simply  a  case  of  finding  the  right  attitude 
and  applying  it  intelligently. 

It  is  (he  mark  of  the  skillful  correspondent  to  enter  into  the 
customer's  viewpoint  and  admit  at  the  start,  not  necessarily 
the  justice  in  the  complaint  but  the  propriety  in  bringing  it  di- 
rectly to  the  house.     This  will  put  the  customer  in  the  right 


Sear  Uadasi-. 

Wo  are  surprised  that  you  should  demand  a  money  refund 
on  the  Bhirt  waist  purchased  hy  you  on  the  12th  of  last  month. 
Please  stop  and  consider  that  you  have  worn  this  garment  for 
fieveral  "weeks,   and  that  you  have  already  had  more  than  full 
•value  for  the  ercall  anount  you  paid  for  it.      Wo  feel  that  your 
attitude  is  unfair       How  long  do  you  suppose  we  would  remain  in 
business  if  all  our  customers  used  the  things  they  tuy,   and  then 
tried  to  return  them  several  weeks  later? 

However,   If  you  still  insist  that  you  have  been  de- 
frauded,  you  may  return  the  waist  and  wo  will  e'samino  it  care- 
fully to  determine  whether  you  have  any  Just  cause  for  a  com- 
plaint      If  we  find  that  it  is,   as  you  claim,   defective  intha 
grade  of  material  used,  we  will  refund  your  money. 

Very  truly  yours. 


Hhia  letter  was  vyriiten  to  a  long-time  customer  hy  a  smaU-caliher  corre- 
spondent who  thought  to  save  money  by  letting  customers  understand  they 
could  not  impose  on  the  house.  It  meant  not  merely  the  loss  of  a  good 
customer,  hut  the  falling  off  of  orders  from  her  section  indicated  tliat  the 
house  was  given  a  bad  name  which  it  would  take  years  to  live  down.  The 
corresponderd  vxis  soon  replaced  by  one  who  understood  the  value  of  a 
customer's  good  will,  and  how  he  handled  a  similar  complarnt  is  fhown 
by  the  letter  on  the  opposite  page 

mood  for  the  explanation  that  follows  without  violating  any 
ethical  standards  or  without  putting  the  house  in  a  ridiculous 
attitude. 

If  a  complaint  is  unfair  to  the  house,  the  complaining  cus- 
tomer should  be  shown,  from  his  own  angle,  that  the  house  can 
not  concede  the  demands  without  jeopardizing  its  own  in- 
terests and  the  interests  of  its  customers.     These  lettera  might 


RE-ESTABLISIUNG  GOOD  WILL  1S3 

show  that  such  and  such  a  price  or  policy  would  mean  poorer 
qualities,  or  the  failure  of  some  vital  plan  for  the  actual  benefit 
of  the  customers,  or  unfair  discrimination  which  could  not  fail 
to  hurt  the  customer  in  the  end. 


rear  Uadam: 

We  want  to  thank  you  for  callirs  our  attention  to  tlin 
isperfeot  garment  nhicji  you  .bought  several  weelcs  ago. 

You  don't  know  how  we  regret  ouch  occurrences  as  this. 
hut  with  the  great  nuaher  of  garments  that  daily  pass  through 
the  Inspection  department ,    It   la  apparently  inevitahle  that  onca 
In  a  while  an  Imperfection  will  slip  by  unnoticed.     You  may  to 
sure  we  aim  to  eliminate  such  mistakes  entirely,   and  so  we  feel 
very  grateful  when  a  customer  takes  the  trouble  of  notifying   us. 

We  are  very  glad  to  comply  with  your  request  for  a  dup- 
licate of  the  waist  you  ordered,    even  though  you  have  worn  the 
one  previously  sent,   and  we  assure  you  that  we  would  not  havo  ycu 
wear  an  Imperfect  garment  or  feel  dissatisfied  with  the  goods  ycu 
receive  from  us  for  many  times  the  price  of  this  one  particular 
waist.     It 'Is  our  policy  to  glvo  eatisfaction  always,   to  all 
our  customers. 

So,  we  are  expressing  another  garment  to  you  today, 
prepaid,   and  feel  sure  you  will  find  It  perfect  and  in  every  way 
satisfactory.     We  hope  that  our  previously  pleasant  relations 
will  oontinue,   and  th&t  you  will.    In  your  future  orders,   fizul  no 
cause  for  complaiat. 


Very  sincerely,  youra. 


This  letter  represents  tlie  attitude  now  adopted  by  most  of  the  larger  TnaU- 
order  houses.  While  tlw  actual  cost  of  the  adjustment  of  the  complaint, 
including  express  charges  arui  time  of  correspondents,  amounted  to  nearly 
$2.00,  it  was  considered  a  small  price  to  pay  for  tlie  re-establishment  of 
good  vrdl  and  for  the  publicity  the  pleased  customer  was  certain  to  give 
the  hxmse.  It  is  contervded  thai  the  expense  is  justified  by  tlie  advertising 
the  house  receives 

Misunderstandings,  too,  are  usually  explained  most  suc- 
cessfully with  this  pohcy  of  putting  the  customer's  interests  in 
the  lime-lighL  There  is  always  some  twist  that  can  be  given 
to  an  argument  which  will  appeal  to  the  self-interest  and  reasoa 


194  PURPOSE  OF  ADJUSTMENT  LETTER 

of  the  buyer.  Then  this  attitude  makes  it  easier  to  assume  a 
more  rigid  adherence  to  a  settled  house-policy  and  to  hold  a 
tighter  rein  over  customers  where  this  is  necessary. 

The  tactless  letter  that  starts  out  by  telling  about  the  pre- 
cautions which  the  house  takes  to  guard  against  just  such 
errorg;  that  goes  on  at  length  describing  the  system  of  inspec- 
tion, packing  and  shipping;  that  intimates  the  customer  must 
be  misrepresenting  or  is  a  crank — and  then,  after  he  is  mad 
through  and  through,  winds  up  by  saying  that  if  the  goods  are 
returned  the  order  will  be  replaced,  is  unpolitic  in  the  extreme. 

If  it  is  the  intention  to  send  new  goods  or  refund  the  money, 
say  so  quickly — and  make  a  friend;  thanlc  the  customer  for 
callLi§!g  the  matter  to  your  attention,  and  then,  if  it  ssems  de- 
sirable, tell  about  the  rules  for  inspection  and  shipping,  instead 
of  insinuating  that  the  mistake  must  be  at  the  other  end  of 
the  line.  Admit  that  there  is  liability  of  errot"  in  the  best- 
arranged  systems,  and  express  regret  that  such  a  slip  has  oc- 
curred. 

The  difference  in  these  two  attitudes  is  illustrated  in  the 
letters  reproduced  on  pages  192  and  193.  The  actual  adjust- 
ment is  the  same  in  both  cases  but  in  one  the  attitude  would 
alienate  the  customer  and  in  the  other  would  bind  him  closer  to 
the  house. 

If  the  policy  is  to  show  a  disposition  to  be  fail?  and  guard 
against  the  return  of  the  goods,  as  in  the  case  of  the  concern 
which  depends  more  upon  the  one-time  order  than  the  future 
re-orders,  tactfulness  is  again  the  instrument  that  is  indispensa- 
ble. While  with  concerns  of  this  class  the  same  attitude  of 
interest  and  consideration  for  the  customer's  side  of  the  difficulty 
is  found  essential,  the  purpose  of  the  adjustment  letter  is  to 
carry  the  impression  that  the  house  has  been  fair  and  aims  never 
to  deceive.  Here  the  whole  idea  is  to  persuade  the  customer  to 
keep  the  goods  and  at  the  same  time  make  him  satisfied.  It  is 
often  found  necessary  practically  to  re-sell  the  goods  before 
this  may  be  accomplished.  'So  settlement  letters  of  this  kind 
are  frequently  made  educational,  always  bearing  closely  upon 
the  source  of  the  complaint.  When  dissatisfaction  is  caused 
through  an  incomplete  knowledge  before  the  sale  of  the  exact 
nature  of  the  goods,  an  educational  letter  creates  a  new  desire. 

To  assume  in  these  cases  that  customers  are  always  right 
is  not  only  disastrous,  but  an  incentive  to  dishonesty  as  well. 


RE-SELLING  THE  AGGRIEVED  CUSTOMER  195 

How  not  to  handle  a  complaint  from  a  customer  who  wants 
to  return  goods  with  which  he  is  dissatisfied  is  shown  by  a  letter 
from  an  eastern  publishing  house: 


Cear  Sir: 

We  have  your  letter  of  recent  date.  We  note  you  state 
the  books  do  not  meet  your  expectation.   If  you  expscted  or  in- 
tended these  hooks  for  any  particular  purpose,  you  did  not  so 
advise  us.  We  had  no  means  of  judging  from  your  order  as  to  what 
you  expected  of  these  books,  and  you  understand  we  could  not 
stop  to  inquire. 

When  you  gave  us  an  unconditional  order  we  presumed,  of 
oourse,  you'  knew  what  you  were  buying.  We  cannot  stop  to  inquirj 
tt   every  purchaser  what  use  he  expects  to  make  of  these  books. 

It  would  be  useless  for  you  to  attempt  to  return  the 
books  as  we  could  not  accept  them. 

Yours  truly. 


This  letter  sounds  as  if  the  writer  were  trying  to  rub  vinegar 
and  salt  into  the  wounds  of  the  aggrieved  purchaser  instead  of 
trying  to  sooth  him  and  re-sell  him.  How  such  a  complaint 
can  be  handled  cleverly  and  save  the  order  is  shown  in  the 
letter  on  page  130.  The  proper  altitude  is  to  re-awaken 
the  desire  to  keep  the  books.  Salemanship  may  be  just  as  nec- 
essary in  handling  the  complaint  as  in  securing  the  order.  In 
fact,  making  the  customer  feel  satisfied  is  the  highest  achieve- 
ment of  the  salesman. 

One  of  the  most  successful  mail-order  houses  of  the  country 
sums  up  its  attitude  in  handling  complaints  as  "promptness, 
absolute  truthfulness  and  unfaltering  courtesy.'*  Fixing  respon- 
sibility for  an  error  is  not  the  thing  that  concerns  the  customer: 
what  he  wants  is  the  prompt  assurance  that  his  grievance  will 
be  taken  care  of  in  a  spirit  of  fairness.  As  a  matter  of  business 
a  complaint  must  be  settled  equitably — as  a  matter  of  future 
trade,  it  must  be  settled  promptly  and  in  a  way  that  will  leave 
the  customer  in  the  right  frame  of  mind.  The  actual  adjust- 
ment is  frequently  a  costly  process",  using  the  right  attitude  costs 
nothing  and  yet  it  is  the  most  important  factor  of  aH  in  re-estab- 
lishing good  will  and  in  securing  future  business. 


How  To  Systematize  The 

Complaint  Department 

PART  XV       HANDLING  THE  LONG-DISTAN'CK  CUSTOMER    CHAPTER  70 

A  CERTAIN  NUMBER  o/  com.j)lamts  are  in- 
evitable  in  any  business^  but  the  mail-order  house, 
with  the  many  opportunities  for  mistakes  in  order- 
ing, infilling  orders,  in  packing  and  in  transport- 
ing goods  to  distant  customers,  necessarily  has 
more  complaints  to  handle  than  the  retailer  ivho 
shoivs  an  article  or  goods  to  a  customer  before  a 
sale  is  made.  TlTE  BiG  PROBLEM  is  to  ADJUST 
All  COIMTLAINTS  PEOIVirTLY  and  at  the  S^L\LLEST 
Cost.  To  do  this,  system  is  necessary — system  in 
handling  the  clerical  routine,  in  tracing  or  replac- 
ing the  goods  or  refunding  the  purchase  price  and 
locating  the  cause  of  the  error.  How  this  may 
he  done  is  the  subject  of  this  chapter 

NOT    long    ago    a    rapidly    growing    mail-order    concern 
shipped  an  expensive  range  to  a  Montana  buyer.     It 
was   refused   because   of   a   broken   part.     A  duplicate 
range  was  sent,  and  refused  for  the  same  reason.     A  settiemenl 
was  finally  effected  by  making  a  liberal  discount  on  the  bill. 
The  sale  cost  the  house  $33.43. 

But  il  happened  to  come  to  the  notice  of  the  general  raanr-ger 
and  indicated  a  serious  lack  of  system  in  some  departments  of 
the  house.  He  made  an  investigation  that  brought  to  light 
over  fifty  returned  stoves — damaged  and  useless  until  repaired — ■ 
that  instead  of  being  checked  out  for  repairs  when  refused  and 
returned,  had  gone  back  into  the  regular  stock  and  sooner  or 
later  would  be  sent  out  again.     No  record  of  returned  goods 

I9a 


A  FOUR-FOLD  EFFICIENCY  POLICY  107 

or  of  the  complaints  that  accompanied  them,  had  been  kept. 
The  house  had  outgrown  the  system  that  had  been  used  years 
before  for  keeping  such  information,  and  an  adequate  system 
had  never  been  installed — a  situation  that  every  mail-order 
house  is  likely  to  meet  at  some  stage  of  its  development. 

An  inadequate  complaint  correspondence  department,  to- 
gether with  insufficient  checking  by  complaint  clerks  and 
tracers,  had  left  records  so  indefinite  or  in  such  confusion  that 
they  were  useless. 

A  reorganization  of  the  complaint  department  was  neces- 
sary to  guard  against  repetitions  of  such  costly  mistakes.  It 
was  decided  to  establish  a  definite  route  through  which  com- 
plaints must  go  before  being  turned  over  to  the  filing  clerk  and 
marked  "adjusted."  The  management  aimed  to  promote 
efficiency  along  four  definite  lines: 

1.  By  prompt  and  efficient  handling  of  correspondence 
and  by  securing  the  proper  attitude  in  letters  to  complaining 
customers. 

2.  By  making  the  investigations  as  easy  as  possible,  ar- 
ranging for  cooperation  between  tracers  and  correspondents. 

3.  By  preventing  confusion  and  inaccuracy  in  keeping 
records;  leaving  them  comprehensive  and  convenient  for  future 
reference. 

4.  By  locating  any  weakness  in  goods  or  service  so  that  a 
remedy  could  be  applied  at  once. 

First  of  all,  the  name  "Complaint  Depiartment,"  was  dropped, 
because  of  the  psychological  effect  on  customers.  "Adjusting 
Bureau"  was  adopted  instead  and  all  printed  matter  and  rubber 
stamps  were  changed  to  conform  to  the  new  idea.  Capable 
correspondents  were  put  under  the  direction  of  an  expert  com- 
plaint man,  who  was  held  responsible  for  the  v/ork  and  for  the 
reports  of  clerks  and  tracers. 

Next  came  the  perfection  of  some  system  for  rapid  handling 
of  incoming  claim  correspondence.  A  "complaint  basket" 
was  added  to  the  mailing  table,  into  which  the  sorters  put 
letters  that  should  go  to  the  complaint  department.  To  each 
of  these  letters  is  attached  a  "correspondence  schedule"  slip, 
showing  what  departments  it  must  pass  through  before  filing. 
The  date  and  hour  when  a  letter  should  clear  each  department 
is  indicated  on  this  slip.  To  insure  a  close  adherence  to  the  time- 
schedule,  each  department  handling  the  letter  is  required  to 


198        A  SCHEDULE  SLIP  TO  ENSURE  PRO]\IPTNESS 

stamp  on  it  the  hour  of  clearance.  For  example,  if  a  customer 
demands  the  exchange  Qf  goods,  the  adjustment  calls  for  three 
distinct  operations:  the  receipt  of  the  complaint  is  first  acknowl- 
edged ;  the  goods  previously  sent  are  traced  to  discover  the  source 
of  the  trouble,  and  the  duplicated  goods  are  packed  and  shipped. 
The  correspondence  department  forwards  the  answered  letter 
to  the  tracer,  who  makes  a  notation  of  the  result  of  his  in- 
vestigation and  after  attaching  it  to  the  letter  forwards  it  to 
the  order  department.  From  the  order  department,  the 
letter  and  memorandum  is  returned  to  the  correspondence 
department  foi    filing  and  the  attached  schedule  slip  shows 


WEDNESDAY 
SCHEDULE  SLIP 

140 

HOLD-OVCn 

145 

OELAV 

1^3 

EXCHANGC 

154 

HEFUNO 

139  X 

160 

INOEriNITC 

162 

DAMAGE 

165 

SHORTAGE 

170 

SPECIAL 

176 

SECOND  COMPLAINT 

This  schedvls  elip,  used  by  a  mail-order  house,  indicates  the  departmerds 

through  which  the  comphini  must  pass  and  tJie  time  it  must  clear  each. 

In  this  vxxy  the  complaint  is  routed  and  timed  from  tlie  moment  it  reaches 

the  complaint  basket 

the  time  of  clearance  from  each  department  through  which  it 
has  passed. 

The  letter  acknowledging  the  receipt  of  a  complaint  is  usually 
dictated  by  the  head  of  the  adjusting  bureau  or  some  other 
experienced  correspondent,  as  a  diplomatic  reply  is  often 
a  most  important  factor  in  the  restoration  of  the  customer's 
good  will. 

Then  the  fixing  of  the  responsibility  for  any  error  in  the 
previous  transaction  is  taken  up  by  the  bureau's  tracers.  They 
are  required  to  investigate  all  complaints  fully  and,  if  necessary, 
follow  every  step  on  the  entire  route  taken  by  a  shipment. 
In  cases  of  an  overcharge,  or  when,  for  any  reason,  the  cus- 
tomer is  entitled  to  credit,  a  check  is  made  out  by  the  head  of 
the  department  and  mailed  to  the  customer.    A  notation  to  this 


HOW  TRACER  RECORDS  ARE  KEPT 


19» 


effect  is  made  on  a  report  slip  attached  to  the  letter,  and  a  dupli- 
cate is  sent  to  the  accounting  or  auditing  department. 

If  the  complaint  concerns  a.  package  that  has  been  missent, 
the  tracer  goes  to  the  shipping  or  packing  department,  locates 
the  missing  package  or  takes  it  Up  with  the  transportation 
company  and  investigates  tlic  cause  of  the  error.  The 
missing  goods  may  have  been  missent,  lost  or  stolen  in 
transit,  in  which  case  it  is  the  tracer's  place  to  see  that  they 
are  properly  delivered  or  duplicate  goods  sent,  or  a  refund  made. 
To  systematise  these  investigations,  a  "claim  tracer  ticket" 
with  all  special  instructions  attached  is  given  each  tracer.  This 
b  filled  out  after  the  investigation  is  made  and  attached  to  the 
original  letter.  A  duplicate  is  left  with  the  department  at  fault, 
as  a  gliard  against  similar  errors.  This  is  the  form  of  tracer 
ticket  used  by  one  large  firm : 


CLAIM  TRACER 


CONTENTS  or  PACKAGE. 


CONSIONCO  TO 

ADDRESS 

EXPRESS  CO. 
R.  R.  . 


A  form  of  claim  tracer  ticlcet  furnished  each  person  making  investigations 

by  one  successful  house  to  systematize  this  work.     The  tracer  is  attached 

to  thx  original  letter  aiui  filed  for  future  reference 


The  report  of  the  tracer  is  valuable  for  reference,  and  is 
turned  in  with  the  original  letter,  and  a  notation  of  the  settle- 
ment made  and  copies  of  all  correspondence  sent.  Then 
all  information  regarding  it  is  transferred  to  an  "adjustment 
card"  for  convenience  in  later  reference.  These  cards  are 
filed  alphabetically.  Original  reports  are  filed  in  an  adjust- 
ment correspondence  file  and  the  adjustment  card  in  a  separate 


200 


A  SEVIPLE  COMPLAINT  SYSTEM 


card  file.  Thus  all  data  connected  with  the  adjusting  of  the 
complaint  is  convenient  of  access  and  a  periodic  examination 
of  the  adjustment  cards  shows  accurately  how  eflSciently  the 
work  is  being  carried  on,  and  also  indicates  weaknesses  in  any 
particular  department. 

To  provide  a  record  of  returned  goods,  the  receiving  clerk 
makes  out  a  ''Returned  Goods"  slip,  in  triplicate  form,  on  which 
is  entered  the  name  of  the  complainant  and  a  description  of 
the  returned  goods.  One  copy  goes  to  the  file  with  the  orig- 
inal records,  the  second  goes  to  the  filing  clerk,  who  makes 


RETURNED  GOODS 

BECEIVING 

ncetivcb 

COOOS  or  OCPAaTMENT 

CHARr.r<: 

NUWBEn 

SIZE 

aRTICLES 

««TORE  OF  CLAIM 

RESULT  Of  ir4VESTlG»T10(« 

eCNO  THIS  MCMOKANOUM  TO  COMPLAINT  CLERK                                                                       1 

To  provide  a  careful  record  of  returned  goods,  a  slip  of  this  kind  is  some' 

times  made  out  in  triplicate  form;  one  copy  going  to  the  original  record 

file,  another  to  t/ie  adjustment  file  and  the  third  remaining  with  the  re* 

ceiving  department 


a  notation  of  its  contents  on  the  adjustment  card  and  the  third 
is  held  by  the  receiving  department.  When  the  goods  are 
received  they  are  marked  with  a  red  tag  bearing  the  series  num» 
ber  of  the  "Returned  Goods"  slip.  All  letters  coming  in  relative 
to  the  returned  goods  are  also  noted  on  the  adjustment  card 
and  then  filed  with  the  original  information  and  records.  In  case 
one  of  these  letters  requires  a  later  answer,  it  is  temporarily 
placed  in  a  "tickler  file,"  and  when  the  reply  or  report  has  been 
sent  on  the  time  indicated  by  the  tickler,  the  correspondence 
and  copies  of  the  reply  are  filed  with  the  other  records. 

This  system  has  been  described  because  it  is  comparatively 
simple  in  its  operation  and  can  readily  be  adapted  to  meet  the 


CHECKING  RECORDS  BY  DEPARTSIENTS 


201 


requirements  of  almost  any  business.  The  significant  thing  to 
remember  is  that  system  is  as  necessary  in  llie  complaint  depart- 
ment as  in  handling  of  orders.  It  is  tiie  only  safeguard  against 
heavy  complaint  losses. 

It  may  b2  advisable  with  some  concerns  to  usa  even  more 
detailed  records  of  adjustments.  One  large  mail-order  house 
watches  claims  by  departments.  A  department  record  sheet 
is  made  out  for  monthly  reports  on  the  number  of  claims.    Thb 


777::^ 


rn;;? 


COMPLAINT 


COMPLAINTS 


The  upper  sheet  is  the  regidar  cudomefs  adpsstmevi  card  containing 
the  complete  record  of  the  daim  end  ii»  settkmerj..  The  middb  card  is  a 
record  of  defective  goods  s^  to  ihi  factory  inspector,  a  duplicate  of  which 
is  placed  with  the  original  order  and  correspondence.  The  lower  card  is 
the  departmental  monihly  report  sheet  ehmving  the  fvM  record  of  com- 
f  lairds  by  dcparlmonts 


sheet  has  the  names  of  the  various  departments  ranged  along 
the  top  of  the  sheet  and  spaces  at  the  side  for  the  names  of 
complaining  customers.  In  the  spaces  oppcsite  the  customer's 
name  and  in  the  column  of  the  department  which  handles  the 
goods,  aje  placed  the  number  of  complaints  for  the  mbcth. 
Each  space  is  sufficiently  large  to  hold  several  numbers. 

By  footing  the  departmental  sheet  at  the  end  of  each  month, 
the  number  of  complaints  lodged  against  each  department  js, 
readily  determined  and  the  number  of  complaints  each  customer 
has  made  is  also  shown.  This  sheet  therefore  becomes  an  accur- 
ate check  both  on  department  and  on  customers. 


202  THIS  SYSTEM  APPLICABLE  ANYWHERE 

_. 

Another  monthly  report  card  is  sometimes  kept,  which  shows 
the  pieces  of  each  class  of  goods  returned.  This  is  kept  in  two 
columns  under  each  heading.  The  left-hand  column  contains 
the  number  of  returned  pieces  of  goods  that  may  be  placed  back 
in  stock;  the  other  shows  the  pieces  received  in  bad  con- 
dition. Then,  in  order  to  relieve  the  receiving  clerk  of  carry- 
ing too  many  slips  of  goods  returned,  a  weekly  report  is  made 
up,  showing  what  disposition  he  has  made  of  them. 

A   monthly   report,   giving  a   summary   of  all   complaints 
showing  where  the  responsibility  rests,  and  indicating  the  settle 
ment  made,  is  turned  over  to  the  manager  for  his  inspection. 
This  gives  him  the  information  necessary  for  shaping  new  policies 
or  tightening  up  the  organization  whenever  ineflBciency   may 
be  apparent. 

These  systems  have  proved  practical  in  the  most  exacting 
mail-order  businesses  and  are  applicable,  at  least  in  part,  to  the 
average  house. 

The  fundamental  principle  on  which  the  adjusting  depart- 
ment should  be  systematized  is  to  provide  quick,  intelligent 
and  effective  handling  of  every  complaint.  There  is  need- 
less expense  and  loss  of  patronage  resulting  from  complaints 
that  are  not  handled  expeditiously.  Systematizing  not  only 
aids  in  eliminating  complaints,  by  showing  the  source  of  the 
trouble  so  the  remedy  may  be  applied,  but  by  careful  records 
of  past  difficulties  the  house  is  at  all  times  protected  against 
false  claims,  and  the  knowledge  that  negligence  is  certain  to  be 
detected  keys  up  the  efficiency  of  all  who  have  anything  to  do 
with  filKcg  orders. 


How  To  Eliminate 

Complaints 

PART  XV      HANDLING  THE  LONG-DISTANCE  CUSTOMER    CHAPTiJi  71 

ALL  CONCERNS  doing  business  by  mail  have 
a  common  problem:  keeping  the  number  of  cam- 
plaints  down  to  the  minimum.  This  chapter 
shows  how  inspection  in  the  factory  and  in  the 
shipping  department  keeps  down  errors;  hoiv 
stock  reports  prevent  delays  from  shortage  and,  by 
Placing  Responsibility,  guard  against  careless- 
ness. It  shows  how  customers  may  be  educated 
to  the  use  and  operation  of  new  products  and  how 
complaints  may  be  forestalled — methods  and 
systems  in  successful  operation  in  some  of  the 
largest  houses  in  the  country 

ONE  big  obstacle  in  handling  distant  customers  is 
the  high  cost  of  complaint  settlements.  With  the  aver- 
age house,  an  immediate  adjustment  of  claims  is  not 
only  advisable,  but  by  many  considered  absolutely  essential. 
Refusing  to  settle  a  claim,  even  though  the  house  is  not  at 
fault,  creates  an  undercurrent  of  dissatisfaction  that  sooner 
or  later  is  reflected  in  a  loss  of  business.  So  the  big  problem 
is  not  how  to  handle  complaints,  but  hov*^  to  eliminate  them. 
Cutting  out  the  "kicks,"  by  adopting  methods  and  systems 
that  will  remove  the  causes,  is  a  vital  part  of  business  manage- 
ment. There  are  four  distinct  systems  to  prevent  errors  and 
delays  that  may  be  installed  in  the  average  organization: 

1.     An  inspection  system  which  guarantees  the  quality  of 
products;    and  prevents  complaints  regarding  goods. 

203 


204      INSPECTION  SYSTEMS  TO  KEEP  UP  QUALITY 


2.  A  products-distributing  system  which  assures  a  suffi- 
cient quantity  of  goods  or  of  stock  on  hand  and  in  shape 
for  immediate  shipment  from  the  warehouse.  This  is  to  pre- 
vent complaints  from  delay  in  filling  orders. 

3.  An  oicter  and  shipping  system  which  assures  ac- 
curacy in  filling  orders,  and  cuts  down  the  number  of  complaints 
on  the  wrong  goods  sent. 

4.  Some  method  of  encouraging  cooperation,  which  keeps 
the  working  force  interested  in  the  business.  This  tends  to 
lessen  tiie  errors  due  to  carelessness  and  ignorance. 

Inspection  in  both  factory  and  warehouse  is  absolutely  essen- 
tial to  a  standard  quality.  No  factory  is  so  perfectly  organized 
that  mistakes  will  not  occur — no  selling  organization  should 
overlook  the  necessity  for  some  method  of  detecting  imperfec- 
tions before  they  reach  the  consumer.  The  house  having 
both  a  factory  and  a  mail-sales  organization,  finds  this  double 
inspection  system  the  only  safe  method  of  eliminating  com- 
plaints on  quaUty.  These  systems  are  distinct,  one  representing 
the  producing  end  and  the  other  the  distributing  end. 

In  some  houses  the  majority  of  complaints  come  from  im- 
perfect goods,  and  the  more  rigidly  the  standard  is  maintained, 
the  fewer  "kicks"  will  be  registered.  Take  the  factory  or  manu- 
facturing end  as  the  first  source  of  trouble  through  imperfect 
quality.  Here  inspection  cannot  be  too  rigid.  In  testing  and 
inspecting  manufactured  products,  such  as  machines  or  appa- 
ratus, most  reputable  concerns  allow  plenty  of  time  for  a  com- 
plete examination  of  the  goods.  No  pressure  of  orders  will  jus- 
tify slighting  this  inspection  of  raw  materials,  and  during  the 
process  of  manufacture  all  operations  are  under  the  supervi- 
sion of  foremen  responsible  for  maintaining  a  fixed  standard. 

Another  test  is  usually  made  after  the  assembling  of  parts, 
and  the  machine  or  apparatus  is  put  in  actual  operation 
to  detect  any  imperfection.  In  order  to  locate  responsibility, 
if  imperfections  should  be  discovered  later,  it  is  advisable  to 
have  the  inspector  put  his  initials  on  the  article.  A  checking 
ticket  sometiines  accompanies  an  article  to  the  warehouse. 
This  has  the  name  or  initials  of  the  chief  inspector.  Full  re- 
ports of  daily  tests  are  sometimes  required  for  the  warehouse 
and  the  factory  manager.  With  such  a  system  it  is  practically 
impossible  for  carelessness  to  survive,  for  it  permits  the  im- 
mediate placing  of  responsibility. 


DAILY  REPORTS  A  CHECK  ON  ERRORS  20.5 


Close  inspection  is  also  necessary  with  all  manufactured 
articles,  such  as  shoes,  clothes,  prepared  food-stuffs,  and 
so  on.  Where  packing  is  done  at  the  factory,  this  must  also 
be  inspected  properly.  And  the  same  precaution  should  be 
taken  to  make  later  investigation  easy.  The  first  step  in 
securing  a  standard  quality  of  the  product  is  the  establishment 
of  proper  factory  precautions.  The  second  inspection,  when  an 
order  is  filled,  is  equally  important.  It  is  necessary  for  inspec- 
tors to  have  a  thorough  knowledge  of  the  goods  which  go  through 
their  hands.  This  examination  is  a  further  guard  against 
visible  defects  which  originate  in  the  factory. 

One  of  the  largest  mail-order  houses  in  the  country  has 
established  a  department,  the  sole  purpose  of  which  is  to  trace 
back  complaints  to  the  cause  in  order  to  devise  a  remedy 
and  apply  it.  This  department  has  none  of  the  duties  of  the 
regular  department;  it  takes  up  the  investigation  just  where  the 
regular  house  investigation  stops  because  of  limited  time  and  pur- 
sues the  trouble  to  its  source.  For  example,  if  several  complaints 
of  broken  parts  on  a  stove  indicate  that  there  is  a  fault  in  the 
manufacture  of  that  part,  the  factory  is  notified  of  an  imper- 
fection, and  instructed  to  take  steps  to  prevent  future  trouble. 
But  the  investigating  department  goes  beyond  this  point.  It  goes 
to  the  factory,  finds  where  the  wrong  materials  or  methods  are 
used,  and  sees  that  the  quality  is  brought  up  to  standard. 

But  even  with  inspection  systems  that  bring  the  output  to 
the  highest  possible  standard,  a  house  may  still  be  burdened 
with  complaints,  because  of  delays  in  filling  orders.  To 
eliminate  such  complaints,  some  plan  is  necessary  to  keep  the 
right  quantity  of  stock  ready  for  shipment.  Since  the  average 
department  buyer  or  manager  is  apt  to  underestimate  the  de- 
mand at  times  or  perhaps  to  overstock,  this  factor  in  distribu- 
tion must  provide  for  a  system  by  which  the  quantity  of  goods 
on  hand  can  be  watched.  The  manager  of  sales  has  compara- 
tive records,  showing  the  amount  of  business  done  in  previous 
months  and  years,  and  many  concerns  make  up  an  estimate 
from  this  information  to  guard  against  a  shortage  in  any  line. 
In  tiais  report,  a  minimum  quantity  as  well  as  a  maximum  quan- 
tity is  usually  fixed,  and  to  prevent  stock  dropping  below  this 
minimum,  reports  are  made  periodically  to  the  proper  authori- 
ties. Under  this  system,  any  indication  of  a  heavier  or 
lighter  demand  will  be  immediately  provided  for. 


206 


HOW  TO  GUARD  AGAINST  SHORT  STOCKS 


Below  is  shown  a  stock  report  used  by  one  mail-order  house. 
This  shows  at  the  end  of  the  week  the  stock  on  hand  in  each 
department  and  enables  the  buyer  to  keep  "ahead  of  the  game," 
thus  eliminating  the  complaints  that  might  otherwise  come  from 
delays  in  shipment,  or  the  substitution  of  other  products. 

The  lack  of  system  in  handling  orders,  in  packing  and  in 
shipping  is  probably  the  most  frequent  cause  of  complaints 
in  the  majority  of  mail-order  houses.  A  simple  multiple- 
carbon  system  will  go  far  to  prevent  errors  by  clerks,  for  in  this 
way  one  man  can  keep  tab  on  a  large  number  of  orders;  then 
when  shipments  are  going  slow  he  can  immediately  sink  in 
the  spurs.  Errors  in  shipments  and  invoices  are  brought  to 
light  and  responsibility  readily  traced — which  is  the  surest  way  of 
guarding  against  a  recurrence  of  the  trouble. 

Some  effectual  system  of  checking  is  necessary  to  guard 
against  errors  in  packing  and  shipping.  In  one  house  the  orders 
are  made  out  in  duplicate  by  the  shipping  clerk,  and  checked 
and  routed  by  the  forwarder.  The  forwarder  holds  a  check  on 
the  shipping  clerk.  For  instance,  if  the  order  is  for  a  mechan- 
ical device,  it  usually  has  a  printed  list  of  items  and  parts.  The 
order  is  assembled  by  the  shipping  clerk,  and  all  these  parts  are 
carefully  checked  off.  Then  the  forwarder  goes  over  the  parts 
once  more,  and  rechecks  them  from  the  printed  list.  He  affixes 
his  signature  and  becomes  directly  responsible  for  the  correct- 


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The  department  managers  of  one   mail-order  house  make   up    weekly 

reports  of  stock  on  hand  for  tlie  benefit  of  the  house  buyer,  in  order  tliat  M 

may  guard  against  running  short  on  any  particular  article 


ELIMINATING  SHORTAGE  COMPLAINTS  207 

ness  of  the  order.  The  goods  must  then  pass  through  the  hands 
of  the  packers,  where  similar  rules  ai-e  followed. 

A  general  mail-order  house,  to  insure  rapid  handling  of 
goods,  stamps  the  time  of  receipt  on  the  incoming  order,  thea 
stamps  the  hour  when  it  should  go  through  each  department — 
packing,  checking  and  shipping.  Space  is  provided  on  the 
duplicate  order  blank  for  the  time  schedule  and  a  "back -order 
ticket"  from  the  shipping  room  makes  it  possible  to  keep  tab 
on  the  order  and  see  that  the  goods  are  started  on  time. 

Most  large  concerns  have  a  routing  department  which  deter- 
mines the  route  for  shipping  and  decides  whether  it  is  best  to 
send  by  express  or  freight  whenever  customers  fail  to  give 
instructions  on  such  points. 

Every  house  is  occasionally  caught  short  on  some  line,  and 
when  this  happens  the  only  thing  is  to  send  part  of  the  order 
with  an  explanation  that  the  other  articles  will  follow  later. 

To  eliminate  shortage  complaints,  caused  by  carelessness  in 
packing,  when  the  articles  are  so  small  that  there  is  a  danger  of 
their  being  left  on  the  packing  table  or  dropped,  a  system  of 
double  checking  is  often  used.  To  avoid  complaints  from  the 
customer  after  the  goods  are  received,  he  is  asked  to  check  over 
the  invoice  at  the  freight  station  or  when  unpacked,  and  if 
there  is  a  shortage  or  damaged  goods,  to  get  a  signed  statement 
to  that  effect  from  the  agent  of  the  company. 

It  is  possible  to  ward  off  later  complaints  by  enclosing  a 
letter  of  this  kind  with  the  invoice: 


"Ciieok  over  this  invoice  carefully.   See  that  every- 
thing is  correct.  Be  sure  that  the  goods  are  not  damaged  and 
that  no  article  is  missing.   In  case  we  have  not  heard  to  the 
contrary  within  the  next  six  days,  we  will  assume  that  the  in- 
voice is  correct. " 


This  strengthens  the  position  of  the  house  by  affording  an 
opportunity  to  correct  mistakes  before  complaint  can  be  made. 

The  leading  mail-order  houses  make  it  a  special  point  to 
create  good  will,  and  they  aim  to  inspire  such  confidence  that 
the  customer  will  expect  to  be  pleased — an  attitude  prompts 
him  to  overlook  little  imperfections  in  the  service. 

One  large  concern  goes  to  great  lengths  to  create  this  attitude, 
looking  upon  it  as  one  of  the  factors  in  its  success.     Every  piece 


KEEPING  THE  CUSTOMER  FRIENDLY 


of  literature  it  sends  out  is  carefully  written  to  inspire 
confidence,  interest  and  a  spirit  of  cooperation.  Cata- 
logues, order  blanks  and  other  printed  matter  impress  up- 
on the  customer  the  chance  of  freight  delays,  and  educate 
him  to  associate  delays  with  the  railroad  company,  at  the 
same  time  encouraging  him  to  order  long  enough  in  ad- 
vance to  guard  against  any  disappointment  due  to  some  un- 
avoidable delay. 

It  is  even  possible  to  strengthen  the  position  of  the  house  by 
writing  the  customer  when  an  order  will  be  shipped  and  sug- 
gesting any  particular  attention  that  should  be  given  his  ship- 
ment. This  flatters  the  buyer  and  shows  him  tliat  the  house 
is  anxious  to  give  all  possible  attention  to  his  order. 

Many  concerns  have  found  it  "good  business"  to  go  direct 
to  the  working  force  and  engender  the  proper  feeling  of  co- 
operation among  the  men,  to  secure  greater  efficiency  in  the 
house  service  and  in  this  way  ward  off  many  errors.  Executive 
officers  hold  frequent  meetings,  either  including  all  the  depart- 
ment heads  or  taking  in  tlie  entire  working  staff  of  some  de- 
partment, to  discuss  conditions  in  service.  Sometimes  a  meeting 
of  the  entire  working  force  is  held.  Employees  are  encouraged 
to  tell  of  any  difficulties  which  they  believe  should  be  remedied. 
These  meetings  also  consider  the  complaints  received  and  ways 
of  eliminating  them. 

A  house  that  has  been  especially  successful  in  eliminating 
complaints,  makes  an  immediate  adjustment,  and  then  starts 
an  investigation  to  find  the  cause.  This  may  involve  a  dozen 
ramifications,  but  the  policy  of  this  house  is  never  to  hesitate 
over  the  expense  of  any  such  investigation,  for  while  the  original 
claim  may  have  been  only  a  dollar,  and  it  may  take  ten  dollars 
to  locate  the  source  of  trouble,  the  money  is  well  spent. 

The  evident  willingness  to  back  up  a  product  has  a  psycho- 
logical effect  upon  customers.  As  long  as  the  customer  is  sure 
that  the  house  will  meet  him  more  than  half  way  when  he  is 
dissatisfied,  he  is  less  liable  to  complain. 

Complaints  may  sometimes  be  anticipated  and  warded  off. 
If  some  article  has  brought  in  several  complaints,  or  enough  to 
show  that  it  has  not  been  up  to  standard,  it  is  safe  to  assume 
that  other  complaints  will  come  from  the  same  source.  One 
house  anticipates  such  complaints  by  educating  the  customer 
and  tlaereby  avoiding  dissatisfaction  that  would  inevitably  lead 


A  POLICY  OF  FORESTALLING  COMPLAINTS        209 

to  a  complaint.      For    instance,   a  mail-order  manufacturer  of 
paints  guards  against  complaints  by  a  letter  of  this  kind: 

"One  or  two  of  our  customers  have  advised  ua  that  our 
Double  X  grade  of  EVER-RBADY  paints  does  not  spread  readily.   la 
each  instance  this  was  not  the  fault  of  the  paint  hut  of  tha 
persons  applying  it,  for  they  attempted  to  mix  other  ingredients 
with  it.   So  we  want  to  warn  you  now,  hefore  you  have  any  trouble 
along  this  line,  to  use  the  paint  just  as  directed.   And  he  rery 
careful  to  stir  it  thoroughly  hefore  applying  it." 


Another  house  headed  off  complaints  where  a  mistake 
had  been  made  on  a  cream  separator,  sold  bv  mail,  by  rushing 
a  letter  of  this  kind  through  to  customers: 


"We  are  sincerely  sorry  that,  through  a  mistake  in  ae- 
semhling  the  stock,  an  imperfect  skimming  device  was  sent  out  oa 
a  small  lot  of  these  separators.   Your  separator  was  one  of  this 
lot.  To  save  you  any  possible  trouble  with  this  skimmer,  we  are 
sending  you  a  duplicate  to  take  the  place  of  the  imuerfeot  one. 
Please  use  It  whether  you  have  had  any  difficulty  or  not,  and  w« 
will  appreciate  it  greatly  if  you  will  ship  the  imperfect  one 
tack  to  UB  at  once. " 


In  this  way  a  possible  complaint  was  guarded  against, 
although  the  method  proved  a  costly  one  for  the  house. 

But  any  plan  for  eliminating  complaints  is  costly.  Checking 
and  inspection  systems  are  a  big  expense,  but  the  outlay  is  of 
small  consideration  to  a  reputable  house  in  comparison  to  good 
will  and  future  business.  To  adjust  an  individual  complaint 
may  mean  surrendering  not  only  the  profit  on  a  sale  but  several 
times  the  amount  of  the  order.  The  ambitious  mail-order  man 
does  not  balk  at  the  cost,  for  satisfaction  is  the  key-stone  of 
his  business;  without  it  the  whole  structure  tumbles  upon  him. 
Adjust  the  complaint  in  hand  and  see  that  it  does  not  occur 
again  if  it  can  possibly  be  avoided — this  is  the  only  policv  on 
which  a  mail-order  business  can  be  conducted  successfuhy. 


INDEX 

Volumes  I  to  III 


Key: — ^This  complete  index  for  all  three  volumes  of  Business 
Correspondence  is  arranged  according  to  subjects  alphabetically  and 
cross  indexed  under  the  various  subjects  into  which  they  fall. 
Roman  numerals  in  parenthesis  indicate  volumes.  Arabic  numerals, 
indicate  pages  of  volumes. 

Address  cards,  How  to  handle  (See  also  Lists) — (Part)    .      (II)  88 

Adjustments  (See  also  Complaints) — (Chapter)         .       .    (Ill)         170 
Answers  (See  also  Replies  and  Inquiries)  ...        (I)         156 

Appeal,  How  to  get  (Part) (I)         201 

Arguments  that  make,  (Charts)     .       (I)  132,  207,  220,  (III)  6 

Kinds  of (I)  139,  204,  220,  (III)  6 

Man-to-man,  How  to  get        ....  (I)  78,  101 

"       Personal,  Schemes  for  getting         ....        (I)         199 
"  "        Dealer,  Attitude  to  assume  in  (Chapter)  (III)  5 

"  "  "      More  customers  offer  that  makes  (III)  7 

"  "  "       Practical  assistance  offer        .      (HI)  H 

"  "  "       Private  brand  offer  that  makes    (HI)  12 

"  "  "       Profits  offer  that  makes    .        .    (HI)  6 

"  "  "       Quick  service  promise     .        .    (HI)  13 

"  "        Farmer's,  Arguments  to  use  in  (Chapter)     (1)230,231 

"  "  Clearness  necessary  to  .        (I)         236 

"  "  "  How  to  use  price  in      .        .        (I)         228 

"  "  "  How  to  use  tree  trial  offer  in       (I)         229 

"  "  "  How  to  use  guarantee  offer  in     (I)         229 

"  "  "  How  to  use  premium  offer  in      (I)         233 

"  "  Something  for  nothing  offer  in     (I)         235 

"  "        Man's,  Making  ambition  the  talking 

point  in— (Chapter)       .  (I)         217 

"  "  "      Necessity  for  logic  in         .        .        (I)         225 

"  "  "      Universal  approach  through  of- 

fer of  more  money  in     .        .        (I)         216 
Women's,  Little  catches  in —(Chapter)     (1)209,210 
'  "  "  How  to  arouse  curiosity  in         (1)205,206 

"  "  "  How  to  employ  flattery  in    .        (I)         214 

"  "  "  How  to  use  salesmanship  in        (1)211,212 

Appearance,  How  to  plan  the  letter— (Part)       ...        (I)         102 
Form  letter.  Individualizing  the — (Chapter)         (I)  90 

"         "       Attention-getting  schemes  for   .        (I)         102 
"         "       Disguising,  Schemes  for    .       .        (I)  93 

"         "       Enclosures  that  improve    .       .        (I)         101 
"  "         "       Errors  in,  How  to  avoid    .        .        (I)  97 

Fill-ins  that  improve  .        .        (I)  89 

Sio 


BUSINESS  CORRESrONDENCE  211 


(I)  96 

(1)         103 


(I)  117 
(I)  104, 
(I)         104 


Appearance,  Form  letter  versus  circular 

"  Letterhead,  Distinction  in— (Chapter) 

*'  "  Appeal  to  classes  by 

"  "  Conventional 

"  "  Eccentric     .... 

Mechanical,  How  to  make  up        .        .     (I)  91,97,109 
*'               Policy  and  quality  in.  Uniformity  of— (Chapter)  (I)  115,119 

"                Policy  and  quality  in.  Rules  for  getting       .  (I)         117 
"                Stationery,  Impression  created  by — (C  hapter)    (I)         103 

"                      "           Grades  and  quality  for      .        .  (I)         105 

"               Typographical,  How  toimprove — (Chapter)  (1)  98,  113 

"                          "               Envelope,  Printing        .        .  (1)         109 
"                          "               Mechanical  processes  for  (I)  110,  111,  112 

Uniformity  of  -(Chapter)      ....  (I)         122 

"  Rules  for (I)         123 

"                       "             "  Stenographer  aids  that  get  (I)         126 

Attention,  Attracting,  Schemes  for— (^Chapter)           .        .  (11)         125 

Catch  lines  and  stickers  for     .        .  (II)         128 

Colors  effective  in     ....  (11)126,127 

"                  "          Coupling  up  scheme  and  message  (II)         129 

Business  letter,  Definition  of (I)           71 

"      Advantages  and  functions  of  (Chart)     (1)7,8,9,10,12 

"             "      Analysis  of.  How  to  make          ...  (I)             5 

"      closing.  How  to  make  effective  (Chapter)  (I)           51 

"             "             "       clinchers.  How  to  use          .        .  (I)     53,  55 

"             "             "       enclosures.  Avoiding  too   many  (I)         166 

"             "             "               "           Importance  of          .  (1)165,  166 

•'             "             "       Signatures  for.  Personality  in      .  (1)163,164 

"             "             "       Questions  in.  Ways  for  using      .  (I)         149 

**             "      envelopes.  Styles  of (I)         102 

"             "      form.  Principles  of (I)            71 

"      headings.  Distinctive           ....  (I)         102 

"    ^     Requisites  of,  General      .  (I)     72,78 

Business  letter,  Limitations  of (I)           14 

"             "      Machine  made,  (See  also  Appearance)     .  (I)           90 

"      originality.  How  to  get— (Chapter)          _.  (I)           79 

"             "               "           Man-to-man  attitude  that  gives    (I)  80 
"             "               "           News  element  in     .                 (I)     87,  88,  89 

Personal  note  in      .        .        .  (I)     83,  84 

Straight  talks  in      ...  (I)     85,86 

You  element  in        ...  (I)     85,86 

"             "      Policy  and  quality  of  the — (Chapter)        .  (I)         115 

"              "      Preparation  of —(Chapter)          ...  (I)             5 
Material  to  use  in        .       .    (I)  15,  17,  21 

"             "      propositions.  How  to  present — (Chapter)  (I)           39 
"             "               "             Arguments  for,  (See  Argu- 
ments)       .       .       .   (1)46,9,  (HI)  150 

"             "               "             Arrangement  of     .        .        .  (I)           49 

"            '*              "             Descriptions  of.  Clearness  in     (I)  41 

"             "               "             Explanation  of     .        •        .  (I)     41,  45 

"             "               "             Price  in.  How  to  bring  in    .  (I)           50 

*'             "               "             Summary  of,  Advantages    .  (I)           44 

*             "      starting.  Principles  for— (Chapter)   .        .  (I)           29 


412  INDEX 

Business  letter  starting.  Declarative  sentence  in       .        .  (1)         146 

"             "               "      Direct  command  in      .        .        .  (I)         M7 

"             "               "      Mental  shock  in.  How  to  give  (I)     32,  36 

"             "               "      Offer  of  help  in,  How  to  use  (I)  148,  149 

'              "               *'      Straight  question  in     .        .        .  (I)         146 

"             "      stationery.  How  to  prepare        .        .        .  (II)           63 

"             "      style.  How  to  acquire  good — (Chapter)   .  (I)           60 

"             "          "     Hang-togetlier  in,  How  to  insure    .  (I)     64,  67 

'•             "          "      Requisites  of.  General      ...  (I)     62,  63 

Campaigns,  Methods  for  using  letters  in  (See  also  Dealers)  (III)           34 

Circulars,  How  to  handle (I)           96 

Clinchers  How  to  use  (See  also  Business  Letter)      .        .  (I)     53,  55 

Closing,  How  to  plan  (See  also  Business  Letter)        .        .  (I)           51 

"        Danger  of  exaggeration  in (I)           54> 

'*        Dry  climax  always  fatal  in (I)           56 

"        Importance  of  persuasion  and  inducement  in      .  (I)           51 

"        Inducements  that  get  the  order  in         .        .        •  (I)     55, 57 

Coin  cards.  Schemes  for  applying  (See  enclosures)   .        .  (I)         197 

Collections,  How  to  handle  mail— (Part)     ....  (HI)         107 

Collections,  Dunning  letters  in,  Psychology  of 

(III)     108,  110,  114,  118,  121,  123,  135,  158,  168 

"              Instalment,  How  to  handle— (Chapter)          .  (Ill)         126 

"  "  Collection  agency  schemes  for  .  (111)132,133 
"                     "             Last  resort  schemes  for        .(111)134,135,138 

"                     "             Man-to-man  appeal  in         .        .  (HI)         133 

«                     "             Reselling  the  customer  in     .        .  (111)130,131 

"              Last  Resort,  How  to  make— (Chapter)          .  (HI)         147 

"                 "          "       Forcing  C.  O.  D.  payments  in  .  (111)151,152 

"                "          "       Holding  purchases  in          .        .  (HI)         151 

"                "          "       Intentional  error  in     .        .        .  (HI)         153 

••                "          "       Personal  collectors  in          .        .  (111)154,155 

••                "          "       Quoting  customer's  promises    .  (HI)         150 

•'                "          *'       Reminder  for.  Special  forms  of  (HI)         149 

"          "       Telephone  and  telegram  in,       .  (HI)         148 
"             Mercantile,  Attitude  of  credit  men  in  (Chapter)  (III)         107 

'•                     "            Big  stick  in.  When  to  wield        .  (111)113,117 

•*                     "           Salesmanship  in  the  letters  for    .  (HI)         111 

"                      "           Tact  and  cooperation  in      .        .  (111)114,115 

■•  Petty,  How  to  handle- (Chapter)  .  .  (HI)  139 
"  "  Schemes  that  pulled  well  in  .  .  (Ill)  142, 144, 155 
"              Poorcredit,  Diplomacy  required  in — (Chapter)  (HI)         156 

"                 "         "Forcing  a  part  payment  in.  Plans  for  (HI)        161 

'♦                 "         "       Getting  cash  "with  the  order  (III)  163,  164, 165 

"                 "         "       Investigating  the  credit  risk  in,  (HI)         168 

Reducing  risks  in       .        .        .  _    .        .        .  (111)165,167 
"              Retailaccount,  Attitude  to  adopt  in — (Chapter)  (III)         118 

"                  "             "        Credit  rating  organizations   •  (HI)         125 

';        Reliable  Slow  Pay          .         .  (HI)         122 

"             Statements  in.  How  to  send      ....  (HI)         153 

Complaints,  How  to  make  capital  from — (Chapter)      .  (HI)         180 

"              Adjustments  of.  How  to  make        .        .        .  (HI)         182 

•*              Adjustments  of.  Big,  Methods  of  handling  .  (Ill)         184 

•             Attitude  in  letters  toward     f       .       .       .  (Ill)        173 


BUSINESS  CORRESPONDENCE  213 

Complaints,  Department,  How  to  systematize — (Chapter)  (III)         196 

Records  of.  How  to  handle    .    (HI)         201 

Returned  goods  Checks  for     .    (Ul)         200 

Tracer  records  for       .      .        .    (01)128,199 

"  Eliminating,  Systems  for— (Chapter)      .        .    (HI)         203 

"  *'  Daily  reports  that  help  in        .    (HI)         205 

**  "  Form  of  stock  report  that  aids    (HI)         206 

"  "  Policy    of    forestalling    kicks    (HI)         209 

**  Mail  order,  Schemes  for  getting      .        .        .     (IH)  173, 17-1 

**  Routine,  How  to  handle— (Chapter)      .        .    (ill)         177 

"  "        Adjusting,  Long  personal  letters  in    (HI)         179 

Making  cash  refund  in     .       .        .     (in)171,173 

"  "        Time  schedule  for  letters  in   .        .     (Ill)         178 

Concentration,  Schemes  for  fixing — (Chapter)    .        .        .      (II)         130 

"  Illustrations  that  fix.  Plans  for  using     .      (II)         137 

*•  Mechanical  schemes  to  develop  interest  by      (II)         132 

•  Pen  written  letter  that  gets         .        .        .       (II)         136 

**  Summaries  that  force (II)         136 

Unique   enclosures   that    fix     .        .      (11)131,135,138 

Correspondence,  Business   (See  also   Business  Letter)  (I)  5 

Coupons,  How  to  utilize  (See  also  Enclosures)      .        .        (I)         187 

Deals,  How  to  close  by  letters  (See  also  Sales)         .       .        (I)         128 

Dealers,  Letters  in  connection  with — (Part)      .        .       .      (11)         183 

"        Appeals  to.  How  to  make— (Chapter)         .        .     (Ill)  5 

*'  "         "  Arguments  to  use  in  (See  Arguments) (III)  16 

"  "         "  Attention-getting  schemes  in  .    (HI)  8 

"        Campaigns  on.  How  to  conduct— (Part)    .        .    (Ill)  34 

"  "  "    Economical  use  of  letters  in       .    (HI)  34 

**  *'  "    Free  sample  distribution  in        .    (HI)  55 

**  **  "    How  manufacturers  use  letters  in  (HI)  41 

"  "  "    Inducements  that  pull  orders  in    (III)  43 

"  new  territories,  How  to  handle — (Part)      .        .    (Ill)  34 

Attitude  of  buyers  in        .        .     (HI)  35 

"  "  "  Creating  demand  in  .        .    (HI)  36 

"  "  "  Four  metlious  of  opening 

(Chart)    .        .        .  (HI)  35,41,47,54 

"        Retail,  How  to  get  business  from — (Chapter)    .    (Ill)  17 

"  "       Methods  of  approaching  ....     (HI)  5 

"  "      Oti'ers  to.  Demonstration  ...     (HI)  51 

"   Free  Goods       .        .        .  (111)19,44,46 

"       "   Guaranteed  Goods   .       .     (10)19,45,58,59 

"        "  Private  brands  .       .       .    (HI)  24 

"       "  Prizes (HI)  18 

"  Trial (111)21,22,39 

*'  "      Schemes  for  forcing  orders  from  (111)23,40,55,57 

"  retail  trade.  How  merchants  use  letters  in — (Part)  (II)         171 

"      Appeals  to         (11)171,180,181,190,191,192,193 
"  "         "      Circularizing  store  buyer  in   .        .      (11)197,205 

"  "         "      Clerks'   personal   notes   in  (11)192,198.204 

•*  "         "      Compiling  lists  for  (See  lists)        (11)181,206,207 

**  "         "      Confidential  discount  cards  in  (II)         192 

•*  "         "      Cooperating  with  miinufacturers  in     (TI)         199 

•*  "         "      Extending,  Schemes  for— (Chapter)    (II)         200 


314 


INDEX 


Dealers   retail  trade,  Holding,  Schemes  for — (Chapter)         (II)         189 

"  "  "      Mail  orders  from,  How  to  handle        (II)         203 

"      Offers  in,  .        .       (II)     200,  201,  209,  210,  211 

"      Out-of-town,  Reaching— (Chapter)     (II)         208 

"      Prospects' Names  for,  (See  Lists)        (11)201,205 

"        Small  town.  How  to  get  business  from  (Chapter)  (III) 


(III) 

(III) 

(III) 

(III) 

(HI) 

(I) 

(1) 

(I) 

(I) 


25 

27 

28,33 

27 

26,72 

30,32 

165 

164. 

187 

39,45 

(1)166,171 

(1)166,172 

(I)  32 

(I)         149 

(I)         168 

(1)44,77,80 

(I)         166 

(I)         183 

(I)         149 

(1)159,168 

(II)  88 

3,78102,(11)73 


Appeals  to.  Kinds  of  (Chart) 
"  "  "    Arguments  to  use  in  letters  to 

"  '*         "     Form  letters  to.  How  to  prepare 

"  "  "     Lists  of ,  How  to  get  (See  also  Lists 

"  "  "     Offers  to.  Handling  (See  Offers) 

Enclosures,  How  to  handle — (Chapter) 

"  Addressed  envelope.  Necessity  for 

"  Coupon,  How  to  use  .... 

"  Descriptive,  How  to  use     .... 

*'  Facsimile  testimonial.  Kinds  of 

"  Guarantee,  Forms  of  .... 

"  Illustrations  of 

"  Introductory  card.  How  to  use 

"  Kinds  of.  Effective — (Chart) 

"  Methods  for  coupling  letters  with     , 

"  Order  blank,  How  to  use 

"  Postal  regulations  for  .... 

"  Return  card.  How  to  use  .... 

"  Sample,  How  to  use 

Filing  names,  (See  also  Lists) 

"  Plans  for  (III)  122, 165, 174,  (II)  93, 94,  (III)  7 

Fill-ins,  How  to  make  (See  also  Appearance)    ...        (I)  93 

Follow-up,  How  to  handle— (Part) (II)  5 

"  appearance.  How  to  plan — (Chapter)       .        .      (II)  63 

**  "  Cliange  of  stationery  desirable  for        (II)  64 

"  "  Enclosures  and  colored  cards  for        (II)  70 

"  "  Envelopes  that  strengthen,  Styles  of   (II)  69 

"  application  in  selling — (Chapter)       .        .        .      (II)         5,6 

"  arguments.  How  to  handle  the— (Chapter)      .      (II)  24 

Angles  for— (Chapter)      .        .    _  .       (II)  33 

"  "  Dry  Climax  in.  How  to  guard  against    (II)  27 

"  "  Examples  of  wrong  and  right  .        .       (II)  26 

"  *'  Grouping  schemes  for       .        .        .      (II)  25 

Methods  for  finding  appealing        .      (II)     31,39 
"  *'  Propositions  in.  Arrangement  of     .      (II)  28 

"  "  Schemes  for  selling  land  with  .      (II)  41 

"  campaign.  When  to  use (11)  21 

"  Continuous,  How  to  use  the— (Chapter)   .        .      (II)  17 

"  Continuous,  Businesses  that  use         .        .        .      (II)  19 

Different  kinds  of— (Chart)         ....      (II)     16,20 

Fmictions  of--(Chart) (II)         7,8 

"  Getting  inquiries  by,  Plans  for   .        .        .        .      (II)  10 

"  Getting  orders  by  the.  Schemes  for    .        .        .      (II)  11 

'*  Keeping  trade  lined  up  with  the         ...      (II)  9 

"  Making  personal  (See  also  Appearance)       .        .      (II)  10 

mailing  lists.  How  to  keep  up  the— (Chapter)         (II)  71 

*'         "     Keeping  names  for         ...      (II)  72 


BUSINESS  CORRESPONDENCE 


215 


Follow-up  mailing  lists.  Schemes  for  cleaning  up        .        .    (11)73,75,76 

"  mistakes,  How  to  avoid — (Chapter)  .        .      (II)  77 

"  mistakes.  Schemes  for  checking        .        ,       (11)81,82,83,85 

"  offers,  How  to  make — (Chapter)       .        . 

"  "      Combining  several  inducements  in  the 

"  "      Danger  of  promising  too  much  at  first  in 

"  "      Dangers  from  scaling  prices  in 

"  "      Limiting  time  of       .        .        . 

"  "      Tact  in.  Necessity  for  using  . 

"  Specialized,  How  to  use— (Chapter) 

"  "  Giving  personal  treatment  in 

"  "  Methods  of  classifying  inquiries  in 

"  "  Splits  in,  What  to  do  with     . 

"  talking  points,  (See  also  Talking  Points) 

"  Wear-out,  Utility  of  the        .... 

Form  Letters,  How  to  shape  the  idea  behind 

"  "       How  to  handle — (Chapter)  . 

"  "       Idea  behind  not  always  apparent  in 

"  "       Pulling  power  in.  Schemes  that  get    . 

"  "       Strategy  in.  Schemes  for  using   . 

Guarantee,  How  to  use  the  (See  also  Enclosures)    . 
Inducements,  (See  also  Sales  and  Inquiries) — (Chapter)     (II)         140 

"  Combining  several (II)         143 

"  Premium,  Where  to  use        .       (II)     210      (II)         144 

Price         .        .        •      .  (I)     137,  138,  185       (II)         141 

"  Service,  Getting  a  talking  point  from        .       (II)         147 

"  Schemes   that  make       .        .        (1)53,55,56141.167,186 

"  Telegram,  Hurrying  orders  by     .       .        .(1)138(11)176 

Inquiries,  How  to  get  (See  also  Replies) — (Chapter)       .        (I)         141 
Bringing  hack.  Methods  of  using  letters  for        (I)  50 


(11) 
(11) 
(11) 
(11) 
(11) 
(11) 
(11) 
(") 
(11) 
(11) 
(11) 
(11) 
(11) 

(I) 
(11) 
(11) 
(11) 

(1)171,172 


43 

48 

54 

47 

45,46 

51 

56 

58,62 

61 

59 

42 

21,22 

120 

90 

122 

121 

124 


Inducements  that  get,  General 
"  "      "    Free  trial 


(1)141,165,185 


(I)  193 

"                    "              "      "   Introductory  price           .  (I)  190 

"                    "              "      "   Last  chance     ...  (I)  187 

•                    "              "      "   Limited  time   ...  (I)  187 

"                    "              "      "   Money  back     ...  (I)  193 

"           Smoothing  the  way  for — (Chart)       ...  (I)  187 

"                   "             •'       "      "  Use  of  order  blanks  in,  (I)  185 

"           Quick  action,  How  to  force        ....  (I)  185 

Instalments,  How  to  collect  (See  Collection) — (Chapter)  (III)  126 

Interest,  Awakening  dead  prospects — (Chapter)             .  (II)  162 

"        Making  personal  appeal  to  rouse  dormant         .  (II)  163 

"        IVIan  to  man  appeal  to  awaken.  Schemes  for  (II)  167 

"        Mental  shock  wakes  dead (II)  169 

"        New  inducement  often  effective  in  reviving  dead  (II)  166 

Letterheads,  Distinctive  (See  Appearance) — (Chapter)  (I)  103 

Letterheads,  Illustrations  of                   (I)     62,  63,  66,  96  (II)  49,  50 

Lists,  How  to  handle— (Part)       ......  (II)  88 

Checking  returns  on — (Chapter)       ....  (II)  106 

Compiling,  Names  for — (Chapter)    ....  (II)  88 

"  Books  of  rating      .        .        .  (II)  90 

••  Directory         ....  (II)  91 

"               "        "  Rewards  that  get  .       .        .  (II)  94 


S16 


INDEX 


Lists,  Compiling  Names,  for.  Soliciting       ....       (II)    71,  92 

"        "  Addressing  company    .        .       (II)  97 

•  "  "         "  Schemes  of  getting     (I)  124  (III)  111.  lU, 

131,  132,  142,  143,  Ido,  168  (III)  61,83,  84,  85,  98 

"   Filing  Names  in— (Chapter) (II)  98 

"       Alphabetically  ....      (II)         100 

"       "  "       Colored  card  systems  of         .        .      (II)         101 

"        "  "        Geographically         ....      (II)  99 

-       General  systems  of     (I)   124  (II)  61,  85,  86,  87, 

100,105  (III)  111,114,131,132,142,165.168 


(II)  106 
(11)107,108 
(11) 
(11) 
(H) 
(11) 
(H) 
(11) 
(II) 
(11) 
(I) 


109 

95 

102 

105 

118 

89,90 

113 

171 

90 

(1)186,187 

62 


"   Keying  Correspondence  from — (Chapter) 

"         "  "  "     General  methods  of 

"         "  '*  Private  marks  for 

"  Live,  How  to  get 

"   Recording,  Systems  for       .... 

"   Revising,  Schemes  for         .... 

"  Selecting,  Plans  for      .        ... 

"   Sources  of — (Chart) 

"  Testing  mailings  to — (Chapter) 
Local  Trade,  How  to  drum  up  (See  also  Dealers) 
Machine  letters.  How  to  make  individual  (See  Appearance) 
Mailing  cards.  How  to  use  (See  also  Post  Card) 
Manufacturer's  Letters  (Wholesalers'  and  Jobbers')  —(Part)  (III; 

*'  "      Cooperating    with    salesmen    by 

use  of— (Chapter)      .        .        .    (1X1)60,61,93 

"  "      Cooperating  with  dealers  by  use  of 

(Chapter)      .       .       .  _     .        .    (Ill) 

*•  "      Dealer's  prestige  in.  Making  use  of  (III) 

••  "      Functions  of (Ill) 

"      Getting  the  clerk's  interest  by      .    (Ill) 

•*  **      Getting   the   consumer   into   the 

^dealer's  store  with     .        .        (111)79,80,81 

••  "      Keeping  in  touch  with  dealers  by 

use  of — ^Chapter) 

'*  **      Methods  or  keeping  in  touch  with 

salesmen  by— (Chart)    . 

•*  '*      Paving  way  for  salesmen  with 

'*  "      Ile-inforcing  salesmen's  work  by 

use  of — (Chapter) 

"  "      Salesmen's  report  cards  that  show 

results  of       ...       . 
Merchants,  Letters  in  the  trade  of  (See  also  Dealers) 
Names,  How  to  handle  (See  also  Lists) — (Part) 
Offers,  How  to  make  (See  also  Sales) 
Order  Blanks,  How  to  use  (See  also  enclosures) 
Orders,  How  to  get  (See  also  Sales) — (Chapter) 
Originality,  How  to  get  (See  also  Business  Letter) 
Persuasion,  How  to  use  (See  also  Business  Letter) 
Post  Card,  How  to  sell  by  (See  also  Enclosures) — (Chapter) 

"      "     folders.  Double  and  triple.  How  to  use 

"      "     Fmictions  of.  Four (1)175,177 

"      "      illustrations (1)186.187.193 

"      "      Mailing,  Colored,  Cost  of  the  .        .        .       .        (I)         181 


(III) 


78 

83 

61,82 

87 


71 


(in) 

90 

(HI) 

64,70 

(III) 

76 

^^?, 

69 
5 

(11) 

88 

(11) 

43 

(1)169,187,197 

(I) 

128 

(1) 

79 

(1) 

52 

r)  (I) 

173 

(1) 

180 

BUSINESS  CORRESPONDENCE  217 

Post  Card  mechanical  make-up  (I)         180 

"      "     order  blanks,  Schemes  for  using     ...        (I)         176 

"      "     postal  regulations (I)         183 

Postscripts,  How  to  use         ....       (I)         98     (III)         104 

Propositions,  Last  resort,  How  to  make — (Chapter)        .      (II)         156 

"  "  "      Letters,  telegrams,  etc.,  in,       .      (II)         161 

"  "  "      Personal  guarantee  for     .        .      (II)         159 

"  "  "      Trial  offer  inducement  for       .      (II)         158 

"      Premium  offer  for     .        .        ,      (II)         160 

"  Presenting,  Plans  for  (See  also  Business  Letter)  (1)161, 171 

Pull,  Schemes  that  make  letters  (See  also  Appeal)  .  (I)  201  (II)         173 

Replies,  Handling— (Chapter)      .       _.       .  _     .       .        .      (II)         149 

"        Appeal  to  curiosity  effective  in  getting        .       .      (II)         154 

*'        Following  the  line  of  the  prospects'  needs  to  get       (II)         150 

"        Holding  proof  until  asked  for  to  get  .        .        (II)         151 

"        Introductory  offer  propositions  to  bring      .        .      (II)         153 

"        Sending  out  tracer  to  get.  Schemes  for        .        .      (II)         152 

"        Writing,  Plans  for  (See  also  Inquiries) — (Chapter)   (I)         184 

"  "        Arguments  to  use  in        ....        (I)         196 

"  "        Cheerfulness  in.  Psychological  effect  of        (I)         156 

"  "        Completeness  in.  Necessity  for      .       .        (I)         158 

"  "        Promptness  in, (I)         155 

Retail  trade.  Using  letters  in  (See  also  Dealers) — (Pai't)         (II)         171 

Sales   How  to  make  by  letter— (Chapter)  .       .        .        (1)151,152 

"    clinchers.  Plans  for  using  ...       (I)   130,131,163,164 

"    delays.  How  to  prevent (I)         154 

"  enclosures.  How  to  use  (See  also  Enclosures)  .  (I)  165 
"  enclosures.  How  to  offer  sample  .  .  •  (I)  1^3,  155,  168 
"  inducements,  Kinds  of  ....  (I)  53,  56  137,  139 
"  introductory  letter.  Elements  of  ....  (1)129,131 
"  inquiry.  How  to  answer  the  (See  also  Replies)  .  (1)  131, 162 
"  offers.  Different  kinds  of  (See  also  offers)  .  .  (I)  137, 138 
"  replies.  How  to  handle  (See  also  inquiries)  .  .  (I)  137 
"  replies.  Inducements  that  will  bring  (See  also  Replies)  (1)139, 141 
"   statements.  How  to  make  specific     ....        (1)         134 

"    summary.  Necessity  for (I)         138 

Salesmen's  Letters,  Attitude  towards  customers  in(Chapter)  (111)101, 105 
Filing  data  for      .       .       .       .       .    (111)102,104 
"  **         Four  methods  of  producing        .        .    (Ill)  96 

"  "         Interesting  customers  with — (Chapter)  (III)  95 

"  "         Postal  and  mail  folders  in  place  of   .    (HI)         106 

"  "         Postscripts  in.  How  to  apply     .        .    (Ill)         103 

Samp/es,  How  to  use  (See  also  enclosures  and  Sales)  .         (1)139,148 

Samples,  Illustrations  of (I)         153 

Settlements,  How  to  get  (See  also  Collections)— (Part)  .  (Ill)  107 
Signatures,  How  to  apply  form  letter  ....        (I)         164 

Store  Trade,  How  to  build  up  (See  also  Dealers)  .  .  (II)  171 
Style,  Requisites  of  (See  also  Business  Letter) — (Chapter)  (I)  60,61 
Talking  Points,  How  to  handle  (See  also  Arguments)      .        (I)  15 

"  "       Classifying,  selecting,  testing  and  filing  (1)18,19,20,21 

''"'^  "    _  Sources  of  material  for      ....       (I)     16,17 

Territory  opening.  How  to  use  letters  in  (See  also  Dealers)    (III)  34 

Testimonials,  How  to  use  (See  also  Enclosures)       .        .        (1)134, 165 


218  INDEX 

INDEX  TO  LETTERS 

Action,  Paragraphs  that  prompt  — (I)    135,  136. 

188,  189,  190,  191,  19-2,  193,  194,  195,  198  (II)  46,47 
\clvance  in  price  argument,  How  to  use  .  .  (II)  141,146,159 
A.ppcal,  Effective  and  clever.  Examples  of  ... 

(I)     98,  100,  101,  216,  217,  218  (II)  157.  163,  164 

"       that  gets  attention (I)         147 

to  farmers.  Examples  of (I)     232, 233,  2:54 

Investment         .....  (I)     217,222,225,226 

'*       Man-to-man,  Reviving  customers  by     .        .        .      (II)         167 

"       to  merchants (1^^)         ^'^^ 

"  to  women.  .  .(1)203,205.207,208,209,211,212,213 
Argument,  Inducement  and  proof.  Effective  use  of  (I)  45,  168,  182 
Assertion,  Unsupported,  Weakness  of  ....        (I)         136 

.\ttention-getting  schemes (I)         101 

Attitude  in  complaint  letters, (Ill)     172,  181 

"        Illustration  of  man-to-man     ....         (I)     83,  86,  87 
"        Right  and  wrong      .        .       .  (I)   144,  145,  162,  163,  219,  220 

Brevity,  Illustrating  unpardonable (II)  83 

papital  out  of  current  events,  making         .         (1)88,89(11)132,158 
Catalogue,  How  to  ink  the  letter  with  the  ...        (I)         156 

Closing  paragraphs.  Examples  of  poor        .        .     (I)     54,  56,  57,  58,  59 

Collection  letter,  Agency (Ill)     132,  133 

"  "      containing  salesmanship.  Example  of   .    (HI)         162 

"  "      showing  advantages  of  cash  with  order      (111)163,165 

"      Right  attitude  and  schemes  for  (III)  110,  111,  142,  143 

"  "      quoting  from  delinquent's  letter     .        .     (HI)         150 

"  letters,  Familiar  forms  of (Ill)         109 

Tact  and  crudenessin  (III)  114, 115, 135, 136, 137, 138 
*'  "        used  in  the  following  up         .        .  (111)145,146 

"  "        Use  of  inducement  in   .        .        .        .     (HI)  130, 131 

"  "        used  on  instalment  accounts  .  (111)128,129 

used  on  retail  trade  .        .        .  (111)121,122 

"  "        showing  false  versus  true  note  (111)166,169,170 

"  "        used  as  a  last  resort         .        .        .  (111)134,138 

Complaints,  Clever  letter  that  gets (HI)         176 

Confidence,  Taking  reader  into  writer's      ....      (II)         166 

Continuity,  Illustration  of (I)  76 

Continuity  Ijroken  by  one  poor  paragraph        ...  (I)         134 

Credit  letter.  Holding  up  an  order  to  force  collection  in       (HI)         163 

"     Poor  Risk,  Diplomatic  and  undiplomatic  letters  to,    (III)  161, 162 

"    Poor  risk.  Rewritten (HI)         161 

Customers,  Schemes  for  getting  new 

(II)     122,  215     (HI)     45,  56,  58,  84,  86 
Dealer  letters,  Inducements  in.  Illustrations  of  (II)  174, 175, 187  (III)  8 
"  "      emphasizing  special  prices    .        .    (II)     143     (HI)     113 

"  "      Trade  getting  letters  from  wholesalers  and 

manufacturers  used  as       (HI)     18,  19, 
20,    21,    22,    23,    29,    30,    36,    38,     39, 
42,    43,    45,    48,    49,    50,     51,     52,     53,    55,    56,    78 
"  "      written  while  on  trip  to  city  .        .        .      (II)         193 

"  "      used  in  getting  lists  of  prospects  .        .      (II)         194 


BUSINESS  CORRESPONDENCE 


219 


(11)17,18,32 
(II)     8 
29,38  (111)112,113 
(I)     94 
(I)  93, 125 
(II)    12  i 
52  (III)  91 
(II)  48,  49 
(II)    154 
(11)134,135 
(II)  36,37 
(11)139,151 
(III)  23,  24 
(II)  73, 74 
(II)     53 
(III)     87 


(I) 


(I)     84 


Demonstration  offer.  Effectiveness  of.  Illustrations  of       .  (II)         142 

Descriptions,  Effective (I)     42,  43 

Follow-up  angles,  Kinds  used  in  selling  real  estate         (II)  31,40,41,42 

"  Continuous,  Nine  letter  angles  for 

"  as  an  educational  medium 

"  Good  and  poor  examples  of       .      (II) 

Fill-in,  Illustrations  of  poor  and  effective 
Form  letters.  Wrong  and  right  methods  of  handling 
Getting  orders  through  voting  contest 
Ginger  talk,  Effective  examples  of 
Inducement,  Schemes  for  playing  up  the 
Information,  Straightforward  request  for 
Interest,  Paragraphs  for  getting    . 

"        Illustrations  of  personal 

"        Novel  ideas  of  arousing 

"        in  customers  after  purchase  is  made 
Lists,  Appeal  for  cooperation  in  checking 
Making  it  easy  to  answer.  Letters  that  have  pulled  by 

Manufacturers'  letters  to  clerks 

"      to  educate        .         (II)   123   (III)   61,63,65,66 
"      for  customer  trade       ,        .       (Ill)  73,  74, 76, 77 

Mistakes  to  avoid,  Wrong  attitude (II)     81,  82 

Offer,  Giving  reason  for  special (11)146,156 

Otter,  of  the  cheaper  substitute (II)           55 

Opening,  Non-essential  paragraphs  in         .        .                 (I)     38,  39,  49 
Openings,  Original          .        .        ,        .  (I)     32,33,34,35,36,37,81,82 
Overcome  objections,  Ex"plaining  application   of   prod- 
uct to         .        .        . (Ill)         182 

Point  of  contact.  Good  illustration  of (I)           85 

Pen  written  letter  to  impress  reader (II)         136 

Persuasion,  Examples  of  good  and  poor      ....  (I)     52,55 

Premiums,  Offering (II)  49, 160 

Presentation,  Effective            (I)         135 

Proposition,  Showing  how  to  split  up (II)           50 

Prospects,  Applying  stimulant  to  dormant           .        .        .  (II)         169 

Prospect's  needs.  Schemes  for  getting  line  on     .        .        .  (II)         121 

Postals,  Specimen  of  business-getting (I)         183 

Pulling  power  increased  by  effective  enclosures          .        .  (II)         133 

References,  Good  use  of (I)           48 

Reply,  Clever  scheme  for  getting    (T)     143,  147,  148,  149  (11)152, 153 

Reply  to  an  inquiry.  Good  and  poor (1)158,159 

Sales  letter.  Good  example  of (I)         133 

Salesmen's  letters  to  dealers  .        .        .  (Ill)     96,  97,  98,  101 

Service  inducements.  How  to  play  up          ....  (II)         147 

Style,  Forceful,  Good  and  poor  examples  of       .        .        .  (1)223, 224 

"   emphasizing  "you"  element (1)179,180 

"   Good  and  poor  solicitation          .        .        .         (II)  176,  177,  181 

"    Specific  statements  in          .        .        .          (1)46  47  (11)39,184 

"   Unity,  Sequence,  Logic  and  Climax  in    .        .        (1)72,73,77,82 

Subject  heading.  Use  of (I)         156 

Summary,  Good  examples  of (I)           44 

Tabular  matter,  How  to  use (II)           35 

Talking  Points,  Coupling  up         ...       .                .  (Ill)         138 


3  1 158  00781  4170 


UC  SOUTHERN  REGIONAL  LIBRARY  FACILITY 


AA    001095  105    i 


SOUTHERN  BRANCH, 

UNIVERSITY  OF  CALIFORNIA, 

LIBRARY,      f 


